African money transfer company Dahabshiil and M-Pesa Safaricom-Ethiopia have entered into a partnership to enable the Ethiopian diaspora to send money directly to M-Pesa mobile wallets.
The agreement, signed in Addis Ababa, aims to simplify the remittance process to Ethiopia by streamlining money transfers, ensuring faster transactions, and enhancing security.
In a statement, Dahabshiil expressed their satisfaction with the partnership, saying, “We are delighted to have partnered with Safaricom’s M-Pesa Ethiopia, providing our diaspora customers with another channel to send money, further enabling them to support their loved ones. We are a leading provider of foreign currency to all major banks in the country.”
Musse Mohamed, Ethiopia’s country representative for Dahabshiil, added that the partnership helps the company fulfill its 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,” Mohamed affirmed.
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.”
The new service will provide Ethiopians with a secure and convenient way to send and receive money, thereby empowering individuals and families. Both companies are committed to promoting financial inclusion and economic growth in Ethiopia, highlighting their dedication to innovation and exceptional customer service.
Dahabshiil, which operates in over 100 countries worldwide, has been a significant player in African remittances, offering a platform for those in the diaspora. M-Pesa, on the other hand, provides quick and easy financial services through mobile phones.
According to the World Bank, remittance flows to sub-Saharan Africa reached $54 billion (Sh6.98 trillion) in 2023, marking an increase from the previous year’s total. This growth was driven by strong remittance inflows in countries like Mozambique, Rwanda, Kenya, and Ethiopia. Remittances play a crucial role in reducing poverty and contributing to a country’s GDP. Ethiopia generates more than $5 billion (Sh646.9 billion) in remittances annually.
The partnership between Dahabshiil and M-Pesa also reinforces agreements between the Kenyan and Ethiopian leaders, following Ethiopian Prime Minister Abiy Ahmed’s state visit to Kenya in February this year. During the visit, Prime Minister Abiy Ahmed and Kenyan President William Ruto committed to leveraging the cordial relations between the two nations to enhance trade and investment.
