The mobile payment group Safaricom M-Pesa, along with another, unnamed financial service provider, has signed a service level agreement (SLA) with the Ministry of Health of Ethiopia to transform healthcare payments through a secure, efficient and scalable digital payment system.
This partnership aims to enhance financial inclusion, streamline healthcare payments, and improve service delivery nationwide.
The initiative will integrate M-Pesa’s innovative digital payment solutions into health facilities, facilitating cashless transactions for medical services, automating Community-Based Health Insurance (CBHI) payments, and ensuring prompt salary disbursements for health extension workers.
The new system will incorporate interoperable options such as mobile wallets, USSD, QR codes and card payments, significantly reducing the reliance on cash, increasing transparency and enhancing operational efficiency within Ethiopia’s healthcare system.
This collaboration is part of a comprehensive nationwide effort involving the National Bank of Ethiopia, the Ministry of Finance, health insurance services, and the UNDP’s Better Than Cash Alliance.
A pilot phase of the initiative will be launched in selected health facilities across all regions, focusing on the digitisation of payments for medical services, salaries, and benefits. To support the smooth adoption of this system, financial literacy training will be provided to healthcare workers and CBHI beneficiaries.
Elsa Muzzolini, Safaricom M-Pesa Financial Services CEO, describes the partnership as “a major step toward building a digital financial ecosystem that makes healthcare more accessible and affordable for all Ethiopians”.
