African money transfer company Dahabshiil and Safaricom Ethiopia's M-Pesa have signed a partnership that will enable the Ethiopian diaspora to send money directly to M-Pesa mobile wallets.
The agreement, say the partners, will simplify sending money to Ethiopia from the diaspora, streamlining the remittance process and translating to faster transfers and increased security.
M-Pesa is a long-established name in Kenya, providing consumers with financial services through their mobile phones. It was introduced into Ethiopia after Safaricom won a licence to become the first non-state operator to provide mobile services in that country.
However, Dahabshiil, an indigenous African company, was founded further back than M-Pesa – in 1970 – as a remittance venture to enable migrants to send money to family and friends back in the countries of East Africa.
It now claims to be the largest African money transfer business, operating in 126 countries across the world, 40 of which are in Africa, and serving not just individual customers but offering money transfer and banking services to businesses and international organisations, including the United Nations, the World Bank, Oxfam and Save the Children.
An estimated US$54 billion in remittances came into sub-Saharan Africa in 2023. Ethiopia alone generates more than US$5 billion in remittances annually. The M-Pesa-Dahabshiil service will look to take a slice of that market, offering Ethiopians what is described as a secure and convenient way to send and receive money, empowering individuals and families.
