Payments giant Mastercard is joining forces with Ethio Telecom, a telecommunications service provider in Ethiopia, in a move to enhance financial inclusion and wealth creation in East Africa.
Through the collaboration, Mastercard is combining its global capabilities with Ethio Telecom’s extensive customer base to address critical barriers to financial access and economic empowerment in and around Ethiopia.
The two entities will look to bridge gaps in financial access by facilitating inward remittances and outbound payments, connecting Ethiopian users to global financial systems.
Mastercard-enabled telebirr cards will empower individuals to participate in secure local and international transactions, enabling unbanked populations to engage in e-commerce, receive remittances, and make payments digitally. By integrating small merchants into the telebirr ecosystem and offering tailored solutions for youth entrepreneurs and SMEs, the collaboration can stimulate local economic growth.
Enhanced financial inclusion through this partnership will also look to drive wealth creation with digital payment solutions that reduce transaction costs, save time, and expand market opportunities for individuals and businesses. Efficient remittance systems will also ensure that families receive funds promptly, boosting household incomes and fostering economic resilience.
Mastercard processes payment volumes exceeding $6.5trillion annually with over three billion cards in circulation. Its infrastructure supports diverse transaction types, including cross-border payments, e-commerce, and person-to-person transfers, making it vital for global commerce.
Mastercard also provides advanced analytics, anti-fraud systems, and digital identity verification to ensure secure payment solutions. The company’s commitment to financial inclusion is evident in its pledge to connect one billion people to the digital economy by 2025, including 50 million small businesses and 25 million women entrepreneurs.
Enhancing support for the underbanked
In the Horn of Africa — a region facing challenges such as poverty and limited financial infrastructure — this partnership could be transformative. It addresses critical issues faced by marginalised communities that often lack digital identity, data records, consistent connectivity, or electricity. By introducing digital solutions tailored for remote communities, the collaboration can integrate service delivery while increasing access to essential services.
Ethio Telecom integrates with 270,000 merchants, 29 banks, and numerous service providers across sectors like transportation, education, health, and agriculture. This extensive network positions Ethio Telecom as a major driver of Ethiopia’s digital economy. Telebirr’s penetration into everyday services such as utility payments further highlights its potential to foster a cashless economy.
By enabling secure digital transactions across borders and fostering economic participation among underserved populations, Mastercard and Ethio Telecom have the potential to catalyse sustainable development not only in Ethiopia but also in neighboring countries.
This collaboration exemplifies how strategic partnerships can leverage technology to create inclusive economic systems that benefit millions of people while driving scalable social impact across the region.
