- All Ethiopian government offices are now required to accept electronic payments from any provider.
- The policy is a critical enforcement step in the Digital Ethiopia 2025 roadmap.
- The move ends Telebirr’s default monopoly on government transactions.
Ethiopia has taken a decisive enforcement step in its push for a digital-first economy, mandating that all government offices must now accept electronic payments from any licensed service provider.
The directive, announced by the Ministry of Revenues, signals a shift from optional to compulsory digital payment integration across public services. Previously, some agencies accepted electronic payments, often through the state-owned platform Telebirr, but many transactions remained cash-based.
This new mandate compels government institutions at every level to support all approved digital payment providers within 90 days. By eliminating monopolistic restrictions and making digital payments non-negotiable, the Ethiopian government is operationalising a key pillar of its “Digital Ethiopia 2025” strategy.
The move follows sustained efforts to grow Ethiopia’s digital ecosystem. Launched in 2020, the Digital Ethiopia 2025 roadmap prioritised digitising over 130 public services and expanding financial inclusion. Ethio Telecom’s Telebirr platform, introduced in May 2021, has since gained over 51 million users and processes trillions of birr in transactions annually.
However, critics argued that reliance on Telebirr created market imbalances and limited competition. The new directive addresses those concerns by requiring acceptance of any licensed electronic payment method, unlocking opportunities for fintech startups, banks, and mobile money operators.
The government believes this will accelerate infrastructure development, from point-of-sale terminals to API integration, while reducing cash handling costs and improving service efficiency. It also enhances transparency, as digital transactions create auditable payment trails that can reduce corruption.
For Ethiopia’s burgeoning fintech sector, the policy provides clarity and access to a major new market segment: government services. It aligns with broader efforts by the National Bank of Ethiopia to strengthen digital payments regulation, promote interoperability, and deepen financial inclusion.
