Mastercard Seeks Entry into Ethiopia's Domestic Payments System

International payment giant Mastercard is moving to enter Ethiopia's domestic payment market. This development follows the Ethiopian government's policy shift, which opened the payment sector to foreign investment through the National Payment System Proclamation, the same legal framework that enabled Safaricom’s M-Pesa entry.

Despite the potential for growth, World Bank data indicates that digital financial inclusion remains low, with only 21 percent of adults having made or received a digital payment in the previous year. Although Mastercard has doubled its local workforce over the last two years, it must still secure approval from regulatory bodies and key stakeholders before it can expand its operations domestically.