Mobile Finance

M-Pesa Ethiopia expands into tax collection

M-Pesa Ethiopia, the digital financial services arm of operator Safaricom Ethiopia, has signed a memorandum of understanding (MoU) with the Amhara National Regional State Revenue Bureau to enable taxpayers in the region to conveniently pay their taxes using the M-Pesa platform.

The partnership is aimed at improving access to digital financial services while streamlining tax collection processes.

Under the agreement, taxpayers in the Amhara Region, which is in northern Ethiopia, will be able to make secure and efficient tax payments via mobile devices, eliminating the need to visit physical tax offices.

As the TechAfrica News website points out, this initiative is expected to enhance convenience for citizens and businesses while improving the overall efficiency of public service delivery.

The collaboration also reflects M-Pesa Ethiopia’s ongoing efforts to expand its digital financial ecosystem and support the digitisation of government services. 

Assuming it all goes according to plan, the integration of digital payment systems into tax administration could modernise revenue collection and improve operational efficiency within the regional government, while also aligning with Ethiopia’s broader push towards digital transformation and better public service delivery. Indeed, Mengesha Fentaw, Head of the Amhara National Regional State Revenue Bureau, has been quoted as encouraging other regions to adopt similar solutions to support the broader Digital Ethiopia agenda.

M-Pesa has already been widely adopted for various payment schemes, including for utilities such as water and electricity. However, in an increasingly competitive market, both M-Pesa and telebirr (rival operator Ethio Telecom’s digital finance service), are continuing to expand their offering into areas as diverse as payment for video streaming services and for AI creation tools.

 

 



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