Using next-generation Electronic Payments – Ethiopia

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Context: In early 2013, the Government of Ethiopia indicated its intention to continue a next-generation of the Productive Safety Net Programme, as well as to explore new thinking and ideas in light of federal policy developments since 2010, within the context of National Development Policies.

Objective: (1) Conduct a diagnostic of the current payment system in the PSNP, including reviewing (i) the current payment system in the PSNP, (ii) existing and planned systems for electronic payments through mobile banking, digital banking, and (iii) the commercial banking system in Ethiopia, including the relevant legislation. (2) Present the strengths and weaknesses of each of the systems, and recommend the way forward for payments in the PSNP, considering the efficiency and cost-effectiveness of each of the options.

Deliverables: Interviews with stakeholders: Central Bank of Ethiopia, Microfinance Institutions, Commercial Banks, Telecom provider, etc… In-depth analysis of the different distribution channels: cash/ food/ vouchers/ e-vouchers/ electronic initiatives; Report presented in stakeholders™ workshop (January 2014).

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