How to Pay for Fuel with M-PESA in Ethiopia

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M-PESA Safaricom has launched a digital payment service, enabling motorists in Ethiopia to pay for fuel using their mobile phones.

The service, which is now available at the Bole Total Fuel Station in Addis Ababa, offers a smooth and secure way to fuel up without the need for cash.

Elsa Muzzolini, CEO of M-PESA, shared her excitement at the launch event, stating, “With Pay for Fuel with M-PESA, customers no longer need to carry cash or wait for change.”

“Whether you’re a cab driver, a logistics business, or a family fueling on your way to work, this solution is designed for you. It’s more than a technological advancement, it’s about giving people back their time, peace of mind, and flexibility.” she added.

Step-by-step payment process for Paying for Fuel with M-PESA in Ethiopia

Customer drives to a participating fuel station – e.g., Bole Total Fuel Station in Addis Ababa.
Station attendant initiates the transaction:
- Selects the payment type:
  - Wallet (for individual customers)
  - Barrel (for businesses and company accounts)
- Enters the customer’s phone number and fuel amount.
- Sends a USSD request to the customer for payment confirmation.
Customer receives the USSD prompt on their phone.
*Customer dials 733# if needed, enters the fuel amount, and confirms the transaction using their M-PESA PIN.
Transaction is processed – confirmation is sent to both the customer and the attendant.
Customer refuels and drives off – no cash or physical card exchange is needed.
Attendants use the Transaction Report feature to view a complete shift overview for accountability.

Read: How Ethiopians can Pay Insurance through M-Pesa

M-PESA is committed to expanding this service across Ethiopia, with plans to extend it to all 2,000 fuel stations in the country. Station owners, fuel attendants, and drivers are encouraged to adopt the system.

This launch is part of M-PESA Safaricom’s vision to provide digital solutions in Ethiopia. Safaricom entered Ethiopia’s financial services market in 2023, following the acquisition of a Payment Instrument Issuer License from the National Bank of Ethiopia.

This came after Safaricom became the first private telecom operator in Ethiopia, following the country’s telecom market liberalization in 2019. M-PESA, which first launched in Kenya in 2007, is Africa’s most successful mobile money service, renowned for its role in financial inclusion.

Since its launch in Ethiopia on August 16, 2023, M-PESA has rapidly grown its user base. By December 2024, the service had 10.8 million registered users, up from 3.1 million in December 2023. The number of active M-PESA agents has also increased to 29,200, while the merchant base has expanded to 119,500.

Despite facing challenges, including a 74% drop in revenue in the nine months to December 2024, M-PESA continues to show progress. The depreciation of the Ethiopian Birr was partly responsible for the decline in revenue, but Safaricom Ethiopia’s overall revenue grew by 40% during the same period, driven largely by a 93% increase in mobile data revenue.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.