M-Pesa is moving deeper into Ethiopia’s public-sector payments system after signing an agreement that will allow taxpayers in the Amhara region to settle tax obligations through the mobile-money platform.
- •The agreement with the Amhara Regional State Revenue Bureau enables individuals and businesses to pay taxes directly via M-Pesa, reducing reliance on in-person tax offices and manual processing that has long slowed compliance and record-keeping.
- •The arrangement positions M-Pesa as a digital payments channel for government revenue collection in one of Ethiopia’s largest regions, as authorities accelerate efforts to modernize tax administration.
- •The move strengthens M-Pesa’s strategy in Ethiopia, where mobile money adoption has expanded rapidly to 3.4 million users since the entry of Safaricom’s local unit, according to its half-year financial releases.
The platform already offers peer-to-peer transfers, bill payments and other consumer services, and the addition of tax payments pushes it further into the country’s formal financial infrastructure. Getachew Mengeste, a representative of M-PESA Ethiopia, said the agreement reflects efforts to provide practical digital tools for public services.
Tax administration in Ethiopia remains heavily paper-based in many regions, even as the federal government and local agencies pursue broader digital-services reforms. According to Mengesha Fentaw, head of the Amhara Regional State Revenue Bureau, mobile payments would improve accuracy in transaction records.
The Amhara agreement is also likely to serve as a test case for other regions exploring digital tax payments. If the system improves collection efficiency and reduces administrative delays, similar partnerships could follow, giving M-Pesa a larger role in government transactions and strengthening its position in one of Africa’s newest mobile-money markets.
