African money transfer company-Dahabshiil and M-Pesa Safaricom-Ethiopia have signed a partnership that will enable the Ethiopian diaspora to send money directly to M-Pesa mobile wallets.
The agreement, signed in Addis Ababa, will simplify sending money to Ethiopia from the diaspora, streamlining the remittance process and translating to faster transfers and increased security.
In signing the deal, Dahabshiil said in a statement:" We are delighted we have partnered with Safaricom's M-Pesa Ethiopia, giving our diaspora customers another channel to send money there, further enabling them to support their loved ones. We are a leading provider of foreign currency to all major banks in the country.”Ethiopia’s country representative for Dahabshiil, Musse Mohamed said.
He said the partnership allows the company to fulfil its mission of delivering accessible and reliable financial services, by leveraging M-Pesa's growing customer base.
"Together, we are making it easier and safer for Ethiopians abroad to support their families back home,” Mohamed affirmed.
M-Pesa Safaricom’s acting chief digital financial services officer, Anthony Kangethe, said: "We are delighted to partner with Dahabshiil, a leading player in international money transfers. Together, we share a vision of financial inclusion and driving economic development."
The new service, he added, will offer Ethiopians a secure and convenient way to send and receive money, empowering individuals and families.
The two companies have committed to promote financial inclusion and economic growth in Ethiopia, noting that the partnership signifies their commitment to innovation and exceptional customer service.
Dahabshiil, which operates in more than 100 countries globally, has been a key player in African remittances providing a platform for those in the diaspora.
M-Pesa on the other hand provides individuals with quick and easy financial services through mobile phones.
According to the World Bank, remittance flows to sub-Saharan Africa reached $54 billion (Sh6.98 trillion) in 2023-an increase from the previous year's gain.
This increase was driven by strong remittance growth in countries like Mozambique, Rwanda Kenya and Ethiopia.
The receipt of remittances plays a crucial role in reducing poverty as well as contributing to the GDP of a country.
Ethiopia generates more than $5 billion (Sh646.9 billion) in remittances annually.
The signing of the deal between Dahabshiil and M-Pesa enforces the agreements between the Kenyan and Ethiopian leaders, following a state visit by the Ethiopian Prime Minister Abiy Ahmed to Kenya in February this year.
The Prime Minister and Kenya's President William Ruto committed to leverage the cordial relations between the two nations to enhance trade and investment.