Africa’s leading money transfer company Dahabshiil and M-PESA Safaricom-Ethiopia have signed a partnership that will enable the Ethiopian diaspora to send money directly to M-PESA mobile wallets.
The agreement, signed in Addis Ababa, will simplify sending money to Ethiopia from the diaspora, streamlining the remittance process and translating to faster transfers and increased security.
In signing the deal, Dahabshiil said in a statement: “We are delighted to have partnered with Safaricom’s M-PESA in Ethiopia giving our diaspora customers another channel to send money there, further enabling them to support their loved ones. We are a leading provider of foreign currency to all major banks in the country.”
Ethiopia’s country representative for Dahabshiil, Musse Mohamed stated: “We are thrilled to partner with M-PESA Safaricom. This partnership allows us to fulfil our mission of delivering accessible and reliable financial services by leveraging M-PESA’s growing customer base. Together, we are making it easier and safer for Ethiopians abroad to support their families back home.”
M-PESA Safaricom’s Acting Chief Digital Financial Services Officer, Anthony Kangethe, said: "We are delighted to partner with Dahabshiil, a leading player in international money transfers. Together, we share a vision of financial inclusion and driving economic development. This new service will offer Ethiopians a secure and convenient way to send and receive money, empowering individuals and families.”.
Dahabshiil and Safaricom Ethiopia said the two companies share a vision of promoting financial inclusion and economic growth in Ethiopia. This partnership signifies their commitment to innovation and exceptional customer service.
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Dahabshiil, which operates in more than 100 countries globally, has been a key player in African remittances providing a platform for those in the diaspora while MPESA provides individuals with quick and easy financial services through mobile phones.
According to the World Bank, remittance flows to sub-Saharan Africa reached $54 billion in 2023 - an increase from the previous year's gain. This increase was driven by strong remittance growth in countries like Mozambique, Rwanda and Ethiopia.
The receipt of remittances plays a crucial role in reducing poverty as well as contributing to the GDP of a country. Ethiopia generates more than five billion USD in remittances annually. This partnership between Dahabshiil and M-PESA will provide the Ethiopian diaspora with an easy and fast formal channel to send money to their loved ones at home.
The signing of the deal between Dahabshiil and M-PESA enforces the agreements between the Kenyan and Ethiopian leaders following a state visit by the Ethiopian Prime Minister Abiy Ahmed to Kenya in February this year where President Ruto and Mr Abiy committed to leverage the cordial relations between the two nations to enhance trade and investment.