As Ethiopia races toward its goal of 70% adult financial inclusion by 2025, mobile money is emerging as a transformative force for millions, especially in rural and underserved communities. Yet, despite rapid progress and government support, The Path to Mobile Money report by Shega states, significant barriers remain on the journey to a truly inclusive digital financial ecosystem,

According to the report, with a population of 126.5 million and one of the world’s fastest growth rates, Ethiopia is uniquely positioned for a digital finance revolution. The country’s demographic profile skews young, with a large share of digital natives ready to embrace new technologies. However, less than half of Ethiopians currently have access to formal banking services-a gap mobile money aims to close.

The rural-urban divide remains stark. While urban centers like Addis Ababa and Dire Dawa enjoy higher population densities and better infrastructure, vast rural areas face persistent challenges: limited financial infrastructure, patchy mobile network coverage, and low digital literacy. These factors have made it difficult to achieve widespread adoption of digital financial services (DFS), including mobile money, the report further states.

Mobile phone ownership is on the rise, but Ethiopia still lags behind regional peers such as Kenya and Nigeria. As of early 2024, there were 77 million mobile connections-about 60% of the population. However, the cost of smartphones remains a significant barrier, with prices averaging 77% of monthly income, compared to just 28% in Kenya.

Most Ethiopians still rely on basic or feature phones, accessing mobile money through USSD codes and SMS rather than app-based services. Internet penetration is improving, with about one-third of the population online, but rural connectivity and digital literacy remain hurdles.

The report further states that electricity access, crucial for charging devices and enabling digital services, has improved dramatically-rising from 29% in 2012 to 55% in 2022. Yet, a 51% gap persists between urban and rural access, further complicating efforts to expand mobile money in remote areas.

Ethiopia’s financial landscape has evolved rapidly over the past decade. Once dominated by cash and traditional banks, the sector now features a growing array of DFS, including mobile banking, card payments, and internet banking. Regulatory reforms, technological innovation, and a push for financial inclusion have paved the way for non-bank financial institutions and fintech startups to enter the market.

Mobile money, in particular, is seen as a game-changer for the unbanked. Users can deposit, transfer, and withdraw funds via mobile agents or linked bank accounts, and access services such as bill payments, microloans, and savings-all without needing a traditional bank account.

This report from Shega is part of the AKOFADA project aimed at bolstering the accessibility of information on Digital Financial Services in Ethiopia.

Shega is an information services and technology company that provides in-depth insights into Ethiopia’s economy through an integrated media, data, and intelligence solution.

Marking its 25th anniversary, the Bill & Melinda Gates Foundation has announced it will double its spending and commit more than $200 billion over the next 20 years to accelerate global progress in health, poverty reduction, and education, before permanently closing its doors in 2045. The decision, revealed by foundation chair Bill Gates, represents the largest philanthropic pledge in modern history and signals a new era of urgency for the world’s most influential private charity.

In a statement, Gates explained the inspiration behind the accelerated timeline: “There are too many urgent problems to solve for me to hold onto resources that could be used to help people. That is why I have decided to give my money back to society much faster than I had originally planned. I will give away virtually all my wealth through the Gates Foundation over the next 20 years to the cause of saving and improving lives around the world.”

The foundation’s board has amended its charter, which previously called for operations to continue for 20 years after Gates’ death, to now sunset the organization by December 31, 2045. The $200 billion commitment far exceeds the foundation’s current endowment, with the additional funds to come from Gates’ personal fortune.

While the foundation’s core strategies will remain unchanged, the next 20 years will focus on three primary goals: ending preventable deaths of mothers and babies, ensuring the next generation grows up free from deadly infectious diseases and lifting millions out of poverty and onto a path to prosperity.

Since its founding in 2000, the Gates Foundation has already spent more than $100 billion, contributing to halving child mortality, reducing deaths from infectious diseases, and helping hundreds of millions escape poverty. Its support for organizations like Gavi, the Vaccine Alliance, and the Global Fund to Fight AIDS, Tuberculosis, and Malaria has been credited with saving 82 million lives.

The announcement comes at a time of stagnating or declining global health funding, with governments worldwide slashing aid budgets. Gates acknowledged that even the foundation’s unprecedented resources cannot fill the widening gap left by public sector cutbacks, but he remains optimistic about the impact of philanthropy when combined with scientific breakthroughs and global partnerships.

“The needs at this time are greater than any we’ve seen in the lifetime of the foundation, but the achievements of the past 25 years have shown that tremendous progress is still possible,” said Mark Suzman, the foundation’s CEO. “That’s why, in the next two decades, working in close collaboration with our partners, we’ll deploy these new innovations and apply 25 years of learnings and progress to making an even bigger difference.”

The 20-year timeline also allows the foundation to focus on strengthening the broader philanthropic ecosystem, ensuring that institutions and partnerships it has helped build can continue to thrive after its closure.

Gates’ decision is rooted in a family tradition of philanthropy and a belief in the moral obligation to give back. “People will express various opinions about my legacy when I pass away, but I am resolute that ‘he died wealthy’ will not be among them,” Gates wrote. “There are far too many pressing issues to tackle for me to retain assets that could assist others.”

With this historic commitment, the Gates Foundation is poised to shape the next two decades of global health and development-before closing its doors as a testament to the power of focused, time-bound philanthropy.