M-PESA Ethiopia has signed an agreement with the Amhara Regional State Revenue Bureau to allow taxpayers to settle liabilities through mobile money, marking a step into government revenue collection as digital payments expand across the country.
The memorandum of understanding, announced on March 21, will enable individuals and businesses in the Amhara region to pay taxes via the M-PESA platform, reducing reliance on in-person services that have historically required manual processing and multiple office visits.
The initiative positions the Amhara bureau as the first regional tax authority in Ethiopia to integrate mobile money into its payment system. Officials say the shift is intended to ease administrative bottlenecks, improve record-keeping and support more efficient revenue collection.
Tax administration in Ethiopia has long been characterised by paper-based systems and fragmented processes, even as authorities pursue broader reforms to modernise public services and expand digital infrastructure. Mobile money services have gained traction in recent years, particularly following the entry of Safaricom Ethiopia into the market.
Getachew Mengeste, a representative of M-PESA Ethiopia, said the agreement reflects efforts to provide practical digital tools for public services. Mengesha Fentaw, head of the Amhara Regional State Revenue Bureau, said mobile payments would help reduce congestion at tax offices and improve accuracy in transaction records.
M-PESA Ethiopia reports more than five million active users over a 90-day period, with services ranging from peer-to-peer transfers to utility payments. The addition of tax payments broadens its role in facilitating government transactions, as authorities look to digital channels to strengthen compliance and widen the tax base.