African money transfer company Dahabshiil, has announced a strategic partnership with Safaricom’s M-Pesa Ethiopia, to facilitate direct money transfers for Ethiopians in the diaspora, to send money directly to their M-Pesa wallets.
The partnership which was signed in Addis Ababa, aims to simplify the remittance process, by providing a convenient and reliable option for sending money instantly.
During the signing of the deal, Musse Mohamed, Ethiopia’s country representative in Dahabshiil said in a statement,
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“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”.
Also speaking on the partnership, M-Pesa’s acting Chief Digital Finance Officer, Anthony Kang’ethe 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”.
Dahabshiil, a Somali funds transfer company, is one of the largest money-transfer businesses in Africa, which has enabled money transfer across borders for almost five decades, consolidating its presence in more than 100 countries around the world.
The firm operates from over 24,000 outlets and employs more than 2,000 people across 126 countries. Also, it provides financial services to international organizations, as well as to both large and small businesses and private individuals
Remittance transfer remains Dahabshiil’s core business, but the company has diversified to offer financial services to international organizations, businesses, and private individuals.
On the other hand, M-Pesa, a mobile money service launched in Kenya in 2007, has revolutionized the way people in developing countries handle financial transactions. This innovative platform, developed by Safaricom, has transformed the lives of millions by providing them with a simple, secure, and convenient way to send, receive, and store money using their mobile phones.
By facilitating quick and secure transactions, M-Pesa has enabled small businesses to thrive in a cashless economy.
The payment platform started to offer its services in Ethiopia on August 15, 2023, after Safaricom received the Payment Instrument Issuer License from the National Bank of Ethiopia (NBE). Since its inception in the East African country, it has raked in more than 3 million subscribers, as well as landmark deals with money transfer giants.
M-Pesa is betting that Ethiopia, which has around 120 million people and one of Africa’s youngest populations, will power growth for years to come. By leveraging Dahabshiil’s extensive remittance network and M-Pesa’s robust mobile money platform, users can now enjoy a more convenient and secure method of transferring funds across borders.
This collaboration is expected to enhance financial inclusion and connectivity between the Ethiopian diaspora their recipients, ensuring faster and more reliable money transfers.