Ethiopia is taking a strategic step towards digitalization of the financial system by launching a national instant payment system that will allow real-time transfers between banks. The new mechanism is aimed at increasing the transparency of settlements, expanding financial accessibility and supporting economic growth in one of the largest economies in East Africa.
According to the regulator, the system will provide round-the-clock transfers between individuals and legal entities without delays, which is especially important for small and medium-sized businesses, cross-border trade and internal logistics. The launch of the infrastructure is expected to reduce banks' operating costs, accelerate cash flow, and reduce the share of cash payments in the economy.
The authorities emphasize that the national payment platform will become a key element of the country's financial modernization. Representatives of the financial sector note that instant payments simplify settlements in trade, agriculture and industry, as well as create a base for the development of electronic services, marketplaces and digital tax instruments.
The launch of the system is also considered in a broader international context. Ethiopia is actively expanding cooperation with the BRICS countries and the Global South, and the development of its own payment infrastructure reduces dependence on external payment channels. This is especially true for countries focused on regional trade, settlements in national currencies and the formation of alternative financial routes.
Experts point out that the national instant payment system may in the future become the basis for integration with regional and interstate platforms. This opens up opportunities to accelerate cross-border settlements, increase transparency in foreign trade transactions, and reduce currency risks.
For participants in foreign economic activity, the introduction of instant payments means faster settlements with counterparties, a reduction in cash gaps and increased predictability of financial flows. With the growing trade turnover between the countries of Africa, Asia and BRICS, such digital tools are becoming a competitive advantage of national economies.
Thus, the launch of the payment system is not just a technological upgrade, but an element of Ethiopia's long—term strategy to build a modern, sustainable and integrated financial model into the global economy.
