M-PESA Ethiopia has expanded into authorities income assortment after signing a memorandum of understanding with the Amhara Regional State Income Bureau, permitting taxpayers within the area to settle their obligations by way of the cellular cash platform.
The settlement, introduced on March 21, paves the way in which for the over 450,000 people and companies throughout Amhara to pay taxes by M-PESA, which depends on in-person companies which have traditionally entailed handbook processing and a number of visits to income places of work.
“With this partnership, taxpayers within the Amhara Area will be capable of make secure, quick, and handy tax funds by M-Pesa from anyplace,” head of the Amhara Regional Income Bureau, Mengesha Fentaw, stated.
The deal positions the Amhara bureau as the primary regional tax authority in Ethiopia to combine cellular cash into its cost choices. Mengesha stated the transfer will ease administrative bottlenecks, strengthen record-keeping, and help income mobilisation.
Tax administration in Ethiopia has lengthy relied on paper-based techniques and fragmented processes, at the same time as the federal government pushes ahead with reforms to modernise public companies and broaden digital infrastructure. In recent times, cellular cash companies have gained floor, significantly for the reason that entry of Safaricom Ethiopia into the market in 2022.
M-PESA’s tax assortment deal follows consumer progress for the cellular cash service in Ethiopia. Based on Safaricom Ethiopia’s Q3 replace for the interval ending December 2025, the platform’s three-month lively prospects surged 258% year-on-year to achieve 5.2 million.
Transaction volumes almost tripled to 364.3 million, whereas the worth of transactions greater than doubled to ETB 20.37 billion ($129 million), a deepening penetration following its integration with the nationwide funds system, EthSwitch, in October 2025.
Safaricom Ethiopia’s bigger operation has additionally picked up momentum, closing the quarter with 12.2 million three-month lively prospects, a 72% enhance from a yr earlier. The corporate’s service income grew 54% to $74.7 million (KES 9.68 billion).
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