Safaricom M-PESA Moves to Digitize Health Payment System in Ethiopia

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Safaricom M-PESA Ethiopia, in collaboration with the Federal Democratic Republic of Ethiopia (FDRE) Ministry of Health and other financial service providers, has launched a digital payment system to enhance efficiency and accessibility in the country’s healthcare sector.

This initiative aims to streamline healthcare payments, automate insurance transactions, and ensure timely salary disbursements for Health Extension Workers.

The partnership will see the integration of M-PESA’s secure and scalable digital payment solutions into selected health facilities as part of an initial pilot phase. This move is expected to facilitate cashless medical transactions, reduce administrative burdens, and improve financial management within the healthcare system.

Read: How Ethiopians can Pay Insurance through M-Pesa

The initiative further aligns with Ethiopia’s Digital Payments Strategy 2025, which emphasizes innovation and inclusion in financial services.

To ensure seamless adoption, the pilot phase will be accompanied by financial literacy training for healthcare workers and beneficiaries, equipping them with the knowledge needed to navigate digital payments effectively.

During the official signing ceremony, stakeholders highlighted the collaboration’s alignment with Ethiopia’s broader digital transformation goals. The initiative is being implemented with the support of the National Bank of Ethiopia, the Ministry of Finance, Health Insurance Services, and the UNDP’s Better Than Cash Alliance.

Read: Safaricom Ethiopia Launches New International Remittance Service

M-PESA, launched in Ethiopia in August 2023 after Safaricom received a Payment Instrument Issuer License from the National Bank of Ethiopia, has already gained traction with over 1.16 million individual users and 12,400 business customers by early 2024.

Supported by a network of 16,500 agents, the platform has facilitated millions of transactions, proving its reliability and scalability in the financial services sector.

This initiative contributes to Ethiopia’s ongoing digital transformation efforts, aiming to enhance healthcare accessibility and affordability for all citizens.

The project, by reducing reliance on cash transactions and integrating mobile money solutions, seeks to create a more transparent, efficient, and sustainable healthcare payment ecosystem.