Safaricom, a leading mobile network provider in Kenya, has announced a strategic collaboration with fintech company Onafriq to streamline remittance flows into Ethiopia.
This partnership aims to bolster financial inclusion in Ethiopia and provide enhanced convenience for the Ethiopian diaspora sending money back home.
The Safaricom-Onafriq alliance holds the potential to revolutionize Ethiopia’s remittance landscape, offering millions of Ethiopian households increased accessibility to funds from abroad.
Remittances play a vital role in supporting many Ethiopian families, and this collaboration comes amidst a steady rise in remittance inflows into Ethiopia.
Utilizing M-Pesa, Safaricom’s mobile money service, individuals in Ethiopia will now have the capability to receive remittances from various parts of the world, following authorization from the National Bank of Ethiopia to commence remittance services in July 2023.
Safaricom Ethiopia General Manager,Paul Kavavu noted, “Our objective is to simplify payments, and the integration of International Money Transfer services into M-PESA aligns perfectly with that goal. With Ethiopia receiving over five billion USD in remittances annually, this partnership offers the Ethiopian Diaspora a convenient and rapid formal channel to send money to their families in Ethiopia.”
Safaricom will harness Onafriq’s extensive network, connecting 500 million mobile money wallets and 200 million bank accounts, to facilitate seamless transactions.
Onafriq Group Head of Growth, Nika Naghavicommented, “We firmly believe that payments should be effortless, akin to making a phone call – fostering connections through enhanced accessibility. This agreement with M-PESA Safaricom expands our footprint in Africa and reinforces our position as the continent’s largest payment network. We are optimistic that this partnership will contribute positively to economic growth and the attainment of sustainable development goals.”