ADDIS-ABABA, Mar 23 – M-PESA Ethiopia has entered the public revenue space after signing a memorandum of understanding with the Amhara Regional State Revenue Bureau to enable taxpayers in the region to settle obligations through the mobile money platform.
Under the agreement announced on March 21, more than 450,000 individuals and businesses across Amhara will be able to make tax payments digitally, moving away from a system that has largely depended on manual processing and repeated visits to revenue offices. As a result, the partnership is expected to simplify transactions and reduce administrative delays for both taxpayers and authorities.
Mengesha Fentaw, head of the Amhara Regional Revenue Bureau, said the integration will allow users to make “safe, fast, and convenient” payments from any location. In addition, he noted that the move is expected to improve record-keeping and support broader efforts to strengthen revenue collection in the region.
The deal marks the first time a regional tax authority in Ethiopia has incorporated mobile money into its payment channels. It also reflects ongoing reforms by the government to modernise public services, as traditional tax administration in the country has long relied on paper-based systems and fragmented processes.
The development comes amid growing adoption of digital financial services in Ethiopia following Safaricom Ethiopia’s entry into the market in 2022. M-PESA has recorded notable growth, with three-month active customers rising 258% year-on-year to 5.2 million as of the quarter ending December 2025.
Transaction activity has also expanded significantly, with volumes reaching 364.3 million and total transaction value climbing to ETB 20.37 billion ($129 million) after its integration with the national payments system, EthSwitch, in October 2025.
Safaricom Ethiopia reported that its broader operations reached 12.2 million active customers, while service revenue increased by 54% to $74.7 million during the same period, indicating steady traction for mobile money services across the market.
