M-Pesa is tightening its grip on Ethiopia’s digital payments space after striking a deal that allows taxpayers in the Amhara Region to settle their dues via the platform.
The agreement with the Amhara Regional State Revenue Bureau enables both individuals and businesses to pay taxes directly through M-Pesa. It cuts out the need for physical visits to tax offices and trims down the cumbersome manual processes that have long hampered efficiency and record-keeping.
This move effectively positions M-Pesa as a formal channel for government revenue collection in one of the country’s largest regions, aligning with broader efforts to digitise tax systems. It also bolsters the expansion strategy of Safaricom’s Ethiopian unit, where mobile money uptake has already climbed to 3.4 million users, according to recent half-year results.
Beyond peer-to-peer transfers and bill payments, the addition of tax services nudges M-Pesa further into the backbone of Ethiopia’s financial ecosystem. A representative, Getachew Mengeste, noted that the deal is part of a wider push to deliver practical digital solutions for public services.
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Tax collection across Ethiopia still leans heavily on paperwork in many areas, even as reform efforts gather pace. Mengesha Fentaw pointed out that mobile payments could sharpen accuracy in transaction records and streamline administration.
The Amhara rollout may well serve as a proving ground. Should it improve efficiency and ease collection bottlenecks, other regions are likely to follow suit, giving M-Pesa a firmer foothold in government transactions and strengthening its position in one of Africa’s newer mobile money frontiers.
