Ethio Telecom, Siinqee Bank Alliance to Drive Smartphone Penetration and Digital Finance

Ethio telecom , serving a great nation and its people by making telecom and digital services widely accessible in the country, is playing a crucial enabling role beyond its connectivity services. As a leading digital solutions provider, it is fully utilizing technological capacity to realize the vision of Digital Ethiopia. This includes empowering the financial sector with technology, fostering its ecosystem, and enhancing accessibility and inclusivity.

Notably, through telebirr – which gains over 52.5 million customers, modernizes business operations for institutions, and simplifies the daily lives of our community – Ethio telecom is partnering with various financial institutions. They are offering services designed to bring about comprehensive transformation and meaningful economic change, particularly for segments of the population previously excluded from formal financial services.

Today, Ethio telecom and Siinqee Bank, both playing enabling roles in our country’s comprehensive development and growth journey, have officially partnered to launch new services. This allows citizens to conveniently access digital financial services via telebirr wherever they are, quickly and easily. It also provides access to Device Financing, including SIM cards, necessary for utilizing telecom and digital services.

Digital Financial Services Included in the Partnership Agreement:

Savings Service:

• Customers can use telebirr to access both interest-free and various interest-bearing mobile and time deposit savings accounts, allowing them to save any amount of money from anywhere.

‘Enderas’ Microcredit:

• Enables individuals, Micro and Small Enterprises (MSEs), or medium-sized institutions engaged in business to access microloans of up to 30,000 Birr based on their telebirr transaction history. Loan terms range from five days up to 45

Salary Loan:

• Offers employees of private and public institutions (including Ethio telecom and Siinqee Bank staff) whose monthly salaries are paid through telebirr or Siinqee Bank access to loans equivalent to five months’ salary, up to 1 million Birr. The loan is repayable over 14 This is expected to generate up to 1.3 billion Birr in loan disbursement annually.

Significance of Digital Finance Provision:

• Helps address the challenges faced by farming and pastoral communities, as well as Micro and Small Enterprises (MSEs), in areas underserved by financial services.
• Facilitates the expansion of digital finance services through user-friendly options tailored to cultural and linguistic contexts, enabling easy access for users.
• Bridge the financial inclusion gap by allowing citizens in both rural and urban areas to directly access financial services digitally, wherever they are.
• Provides access to non-collateral loan services for customers in both rural and urban areas.

Loan Services for Micro and Small Enterprises (MSEs):

Enables Micro and Small Enterprises, merchants, and agents to start or expand their small businesses through both collateralized and non-collateralized loans up to 1.2 million Birr. It is planned to disburse up to 10 billion Birr annually through this service. This includes:

Non-Collateral Loans: Helps Micro and Small Enterprises grow their businesses and create additional job opportunities:

• Up to 30,000 Birr with a one-month repayment period.
• Up to 70,000 Birr with a two-month repayment period.
• Up to 130,000 Birr with a five-month repayment period. (All available without collateral).

Collateral-Based Loans: For Micro and Small Enterprises, merchants, and agents to enhance their business activities:

• 300,000 Birr loan with a three-month repayment period.
• 700,000 Birr loan with a seven-month repayment period.
• 2 million Birr loan with a nine-month repayment period.

Device Financing Service:

Our company is building extensive digital infrastructure across the country, laying the foundation for implementing new digital and digital financial services. To ensure citizens can utilize this infrastructure and benefit from digital and financial services, Ethio telecom has devised a strategy focused on increasing smartphone penetration through device financing, thereby enhancing digital literacy. This Device Financing service, which includes the provision of SIM cards alongside smartphone financing, is one of the key offerings officially launched today between Ethio telecom and Siinqee Bank.

Accordingly, our company is working with various financial partners to provide up to 2 million smartphones annually to low-income citizens through diverse long-term payment options. As part of this, an agreement worth up to 4 billion Birr for device financing has been reached and initiated with Siinqee Bank today.

The service specifically enables various groups, including citizens engaged in agriculture, employees, merchants, and agents, to acquire necessary telecom devices (smartphones) along with SIM cards through affordable long-term installment plans.

Contribution of Device Financing to Inclusivity:

Device financing allows citizens previously unable to access digital and digital financial services due to the high cost of smartphones to acquire them at affordable prices through long-term payment plans. Beyond individual access, it plays a crucial role in advancing the national digital transformation strategy, boosting smartphone penetration, and bridging the digital divide. Particularly, the service will significantly contribute to making digital financial services inclusive and accessible for farming and pastoralist communities in rural areas that have historically been underserved by financial services.

Looking ahead, our company will continue to strengthen its partnerships with various financial institutions. We are committed to introducing innovative digital financial services that improve the community’s lifestyle, drive inclusive economic growth, and accelerate Ethiopia’s journey towards digital and financial inclusion. Ethio telecom remains dedicated to intensifying its efforts to fast-track the transformation towards a Digital Ethiopia.