M-PESA Ethiopia has notified the National Bank of Ethiopia (NBE) of a service disruption affecting customers using Ethio Telecom mobile data, which has left the M-PESA Au- (M-PESA Lehulum) application inaccessible.

In a statement issued on Friday, the company said the app, launched on December 1 as a telecom-agnostic digital financial services platform, is currently unreachable on smartphones using Ethio Telecom data. Users are unable to log in, complete transactions, or access funds in their mobile wallets. The platform, which received regulatory approval from both the NBE and the Information Network Security Agency (INSA), was designed to provide nationwide access regardless of telecom operator.

Anonymous source at M-PESA Ethiopia told Birrmetrics that customers with Ethio Telecom numbers who already hold balances in M-PESA Lehulum cannot currently access their accounts. The company said it is working with regulators to restore full service.

The World Bank has previously flagged Ethio Telecom’s dominant market position as a risk to competition, citing preferential pricing and control over essential infrastructure. It recommends reforms including cost-based interconnection pricing, open access to shared networks, and independent regulatory oversight to ensure a level playing field for new entrants. Analysts say the current disruption illustrates the competitive bottlenecks the Bank highlighted.

Company insiders told Birrmetrics that the restrictions limit consumer choice, violate principles of net neutrality, and hinder legally sanctioned onboarding under the Payment Instrument Issuer framework. They noted that other PII entities operate across all telecom networks without similar interruptions for Ethio Telecom customers.

Ethiopian Communications Authority Director General Balcha Reba confirmed the authority was aware of the announcement but referred follow-up questions to the NBE, noting that fintech regulation falls under the central bank’s remit. M-PESA Ethiopia said it is engaging the Authority alongside the NBE, where it filed a service interruption notice yesterday. The company operates as a standalone legal entity under a Payment Instrument Issuer licence issued by the NBE.

Birrmetrics reached out to Ethio Telecom for comment but did not receive a response.