Following its partnership with the Bank of Abyssinia and its receipt of regulatory approval from the National Bank of Ethiopia, Paga Group is set to expand its African footprint with the launch of its online payment gateway in Ethiopia.
Paga’s expansion into the Ethiopian market could be seen as a natural move by many. The company’s first market is that of Nigeria; a country that also accommodates the continent’s largest population of 206 million people.
“Ethiopia is on the cusp of a digital transformation,” comments Paga Ethiopia CEO Adam Abate. “Paga has a long history working in Ethiopia, and we are very excited for this next phase of our involvement in Ethiopia, where we can provide innovative payment and financial services to the market.”
The data of Statista strongly suggests an upward trajectory for Paga within its current market of Nigeria, which in 2020 saw 16.7 million users of its mobile wallet. By 2025, that figure is projected to grow to 37.6 million users, when the company is forecast to retain its market dominance.
With a current population of 117.8 million people, Ethiopia is the second-most populous nation in Africa after Nigeria and has set itself on becoming Africa’s next big fintech ecosystem.
When the economies of the world were taking a nosedive in the early days of the pandemic, the National Bank of Abyssinia swiftly responded by allowing any non-bank persons, including mobile networks, to issue mobile payment instruments within Ethiopia.
“We are excited to be partnering with the Bank of Abyssinia, which has demonstrated its commitment to and capabilities in driving Ethiopia’s digital economy forward,” continues Abate. “Combined with Paga’s innovation and technology, we believe our offering will be very exciting for Ethiopian consumers and businesses.”
This move was followed by the Council of Ministers’ approval of ‘Digital Ethiopia 2025′, a scheme that seeks to embrace new technologies that would ultimately contribute to the country’s economic growth and social development.
Paga’s partnership with the Bank of Abyssinia is both a milestone and a core, strategic development in Paga’s growth strategy.
Established in 1996, and with close to 700 branches and over five million customers, the Bank of Abyssinia is one of Ethiopia’s leading banks. It is also a pioneer in Ethiopia of digital finance and payment solutions.
Speaking on its partnership with Paga Ethiopia, Sosina Mengesha, Chief Digital Banking Officer of Bank of Abyssinia, said: “As one of the leading banks in Ethiopia, we always seek to work with best-in-class partners, and we have chosen such a partner in Paga. Their product innovation and commitment to financial inclusion stand out, and we are delighted to come together to empower their delivery of online payment gateway services to Ethiopian consumers.”
Through its online payment gateway and other capabilities, Paga will help drive the digital economy in Ethiopia by enabling sellers to pay and get paid easily online. Paga will leverage its experience and international partnerships to deliver world-class online payment services.
