Ethiopia’s Central Bank announced it will allow non-financial institutions to offer mobile money services. The move will see telecoms venture into the lucrative industry which a study by Ethio Telecom shows that Ethiopia’s mobile banking can generate as much as KSh1.34 trillion ($ 13 billion) by 2025.
In the recent past, there have been talks about government’s plan to liberalize the telecommunication industry. Kenya’s Safaricom has shown interest in a Ksh100 billion strategic investment with Vodacom in the country. Ethiopia with a population of 105 million people presents a lucrative opportunity for growth in mobile money for African based telcos such as MTN Group Ltd, Vodacom, Safaricom, and Orange SA.
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Bloomberg reports that some of the requirements for the license include:
- minimum capital of 50 million birr ($1.5 million)
- ownership by Ethiopian nationals or people of Ethiopian origin and a minimum of 10 shareholders
- maximum account balances of 30,000 birr and transaction limits of 8,000 birr daily and 60,000 birr monthly.
A statement on the National Bank of Ethiopia’s website states that non-financial institutions that receive the permit will also provide saving, credit, insurance and pension products.
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