Ethiopia Opens Public Payments to All Fintechs

Ethiopia is taking a decisive step toward a digital-first economy. The government has now mandated all public offices to accept electronic payments from any licensed provider, ending the long-standing dominance of state-owned Telebirr in official transactions.

The Ministry of Revenues announced that government institutions have 90 days to comply, shifting digital payments from an optional feature to a structural obligation. This policy, which enforces a core pillar of the Digital Ethiopia 2025 roadmap, positions the government as both regulator and enabler of fintech inclusion.

From monopoly to market: what changes?

Until now, Telebirr, launched by Ethio Telecom in 2021, served as the default platform for government-related digital payments. However, its dominance effectively locked out private players—raising concerns about limited competition and innovation.

By opening the doors to all licensed electronic payment providers, Ethiopia is dismantling a bottleneck in public payment infrastructure. This is expected to drive growth in interoperability, modernize payment systems, and reduce the heavy administrative costs of handling cash.

What this means for everyday people and businesses

While the policy sounds like a regulatory update, the implications hit close to home for millions of Ethiopians.

For everyday citizens, this means more payment choices when accessing public services—whether it’s paying taxes, renewing licenses, or covering school fees. For small businesses and merchants, especially in rural areas, the change introduces a broader gateway to government-related commerce using tools they already trust, like mobile money apps and point-of-sale systems.

In a country where cash still dominates many transactions, this shift could streamline access, cut queue times, and reduce the hidden costs of informal workarounds. Importantly, it gives users the freedom to choose the most convenient and affordable payment method—something that’s rarely been available in the public sector.

A test case for the rest of Africa?

Ethiopia’s enforcement could become a blueprint for other African nations navigating the tension between national infrastructure and private sector innovation. The directive balances public oversight with open access—a move that could attract fintech investors, improve digital literacy, and bring more people into the formal financial system.

If implementation is followed through, this policy won’t just change how government payments are made—it could reshape how trust is built in African digital economies.