(Ecofin Agency) - Digital payments increase transparency and efficiency, reducing fraud, delays, and corruption in medical payments.

Safaricom M-PESA Ethiopia, in collaboration with other financial service providers, has partnered with the Federal Ministry of Health to introduce a secure and scalable digital payment system for the healthcare sector. This initiative, announced on March 5, aims to enhance financial inclusion, streamline medical payments, and improve service delivery across the country.

Speaking at the signing ceremony, officials highlighted that the collaboration involves key stakeholders, including the National Bank of Ethiopia, the Ministry of Finance, Ethiopia Health Insurance Services, and the UNDP’s Better Than Cash Alliance.

The partnership will integrate M-PESA’s digital payment solutions into health facilities, allowing for cashless transactions, automated insurance payments, and timely salary disbursements for Health Extension Workers. The pilot phase will roll out in selected healthcare facilities, alongside financial literacy training for healthcare workers and beneficiaries.

Ethiopia has one of the lowest financial inclusion rates in Africa. According to the World Bank’s Global Findex Report (2022), only 46.48% of Ethiopian adults have access to a formal financial institution, compared to the Sub-Saharan Africa average of 55%. By integrating M-PESA’s digital payment solutions, this initiative can bridge the financial access gap, allowing more people to participate in the formal economy, make secure healthcare payments, and benefit from a more transparent and efficient system.

Building on M-PESA’s success in driving financial inclusion across Africa, the initiative aims to make healthcare services more accessible and affordable.

Hikmatu Bilali