Safaricom today announced an international money transfer agreement with Onafriq, a digital payment firm, to help streamline remittance flows in Ethiopia.

Through the agreement, individuals within Ethiopia will be able to receive remittances from different parts of the world through Safaricom’s mobile money platform M-PESA.

The incorporation of International Money Transfer capability into its offering allows M-PESA to tap into and leverage Onafriq’s extensive network, connecting 500 million mobile money wallets and 200 million bank accounts.

This vast reach enables domestic and cross-border disbursements and collections, card issuing and processing, agency banking, and treasury services.

“Our goal is to make payments easier, and the incorporation of International Money Transfer services into M-PESA serves that purpose perfectly. Ethiopia generates more than five billion dollars in remittances annually and this partnership will provide the Ethiopian Diaspora with an easy and fast formal channel to send money to their loved ones in Ethiopia.” Paul Kavavu, general manager at Safaricom Ethiopia, said.

Nika Naghavi, Onafriq's group head of growth, noted that the cooperation will directly support Ethiopia's digital transformation agenda.

The 'Digital Ethiopia 2025' strategy focuses on enabling systems through digital transformation, with digital payments playing a critical role.

The country's approach involves ensuring financial inclusion, and innovating the banking sector.

“We have always believed that payments should be a simple process, as simple as a phone call - connecting individuals through increased access.

“The agreement with M-PESA Safaricom extends our reach in Africa even further and strengthens our position as the largest payment network on the continent.

“We are confident that this partnership will positively impact economic growth and the achievement of greater sustainable development goals,” said Naghavi.