M‑PESA Ethiopia has entered government revenue collection after signing a memorandum of understanding with the Amhara Regional State Revenue Bureau, enabling taxpayers in the region to settle obligations through mobile money.

The agreement, announced on March 21, allows more than 450,000 individuals and businesses across the Amhara region to pay taxes digitally using the platform. Previously, taxpayers relied heavily on in-person processes that involved paperwork, manual verification, and repeated visits to revenue offices.

Mengesha Fentaw, head of the Amhara Regional Revenue Bureau, described the partnership as a major step toward modernising tax administration. He noted that residents will now be able to complete tax payments securely and conveniently from anywhere using their mobile devices.

First Regional Tax Authority to Integrate Mobile Money

The deal makes Amhara the first regional tax authority in Ethiopia to officially integrate mobile money into its tax payment system. Officials say the shift is expected to reduce administrative delays, eliminate paper-based workflows, improve record keeping, and strengthen revenue collection.

Tax administration in Ethiopia has traditionally relied on fragmented and largely manual processes. However, the government has been accelerating digital transformation efforts, particularly following the entry of Safaricom Ethiopia in 2022, which introduced large-scale mobile money infrastructure to the market.

Strong Growth Momentum for M-PESA Ethiopia

The move into public-sector payments comes amid rapid adoption of M-PESA Ethiopia. According to Safaricom Ethiopia’s third-quarter results for the period ending December 2025, the platform’s three-month active customer base rose 258 percent year over year, reaching 5.2 million users.

Transaction activity has grown alongside user numbers. During the same period:

  • Transaction volumes nearly tripled to 364.3 million
  • Total transaction value exceeded ETB 20.37 billion, about $129 million

This growth followed M-PESA Ethiopia’s integration with EthSwitch in October 2025, a development that improved interoperability between banks and digital financial services.


Safaricom Ethiopia’s Broader Expansion

Safaricom Ethiopia’s wider telecom business has also continued expanding. By the end of the same quarter, the operator reported 12.2 million three-month active customers, representing a 72 percent increase year over year. Service revenue climbed 54 percent to $74.7 million, driven by subscriber growth and rising demand for digital financial services.

The addition of tax payment capabilities further strengthens M-PESA Ethiopia’s role in the country’s digital economy. By integrating government payments into mobile money, the platform is positioning itself as a central infrastructure for both public and private financial transactions.