To increase access to financial services, Dynamic Microfinance Institution and Kacha Digital Financial Services, Ethiopia’s first private payment service provider, have partnered strategically. The inaugural ceremony took place at Dynamic Microfinance Institution’s headquarters, and the collaboration has been approved by the National Bank after meeting all the requirements.
This demonstrates a shared commitment to modernising Ethiopia’s financial services sector through innovation and strategic integration. With the objective of providing microfinance services in a digital form that is accessible from any location, customers would be able to get financial services through their mobile devices without having to go to a branch. USSD and a co-branded mobile application have been jointly released by Dynamic Microfinance Institution and Kacha Digital Financial Services.
Its offerings include agricultural loans, savings-based loans, salary access loans, digital savings services, financial services for small and medium-sized businesses, and other “buy now, pay later” options. These services are designed to meet the regular financial needs of customers from different income levels and economic sectors. Ato Bekwethu Alamu, CEO of Dynamic Microfinance, said, “Today’s launch demonstrates our commitment to digital financial services as we work to expand our reach and provide modern services to our customers.”
“We are pleased to see that by working with digital financial service providers, microfinance institutions are providing more community-focused services that complement the country’s digital transformation strategy.
“added Ato Abraham Tlahun, CEO of Kacha Digital Financial Services.
In compliance with the laws and regulations issued by the National Bank of Ethiopia, Kacha Digital Financial Services, the country’s first private payment instrument issuer, has been offering a range of services in collaboration with other financial institutions, such as banks, microfinance institutions, credit and savings institutions, and international remittance service providers. Specifically, it contributes significantly to the modernisation and connection of microfinance, credit, and savings institutions with a digital system, making them easily accessible to their clients via USSD and mobile apps, which were previously restricted to a small number of branches, at any time, anywhere.
Microfinance Dynamic Joint Stock Company With 28 outlets in the Addis Ababa, Oromia, and Amhara regions, it was founded in 2016 with funding from the National Bank and provides loan services to low-income individuals, especially women and young entrepreneurs. There are almost 400 members on its board. Dynamic Microfinance has grown from 2 million to 500 million birr in its 15 years of operation.
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