Ethio Telecom in partnership with Awash Bank has introduced digital finance and device financing services to enable non-collateral credit and allowing customers to own smartphones through long-term payment options.
This comes only a month after the telco launched Znexus, a new line of affordable and cloud-powered smart devices aimed at connecting millions of Ethiopians priced out of the smartphone market.
The solution named Tila aligns with the company’s Next Horizon: Digital and Beyond 2028 Strategy to widely provide digital finance and device financing services with partner institutions, it said.
Tila targets customers residing in both rural and urban areas, employees of private and government institutions whose salaries are paid via telebirr, the company’s mobile money platform, and Awash Bank, as well as micro, small and medium enterprises (MSMEs), and merchants, to access credit services based on an artificial intelligence assisted credit scoring model.
Digital financial services under the partnership agreement are backed by a total annual credit supply of approximately $13 million (2 billion ETB), including micro saving services, personal micro credit, employees’ salary loan, loan services for SMEs, device financing service, and cardless ATM and school pay.
With regards to the smartphone financing, the operator enables citizens; particularly those engaged in agriculture, as well as employees, merchants, and agents to acquire various telecom devices bundled with SIM cards on an installment basis.
“Beyond this, the service significantly contributes to making digital financial services inclusive and accessible to the agrarian and pastoralist communities in rural areas where financial services have remained limited,” said Ethio Telecom in a statement.
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