Ethiopia has unveiled a new policy that mandates its national digital ID, Fayda, for use for all banking transactions in the country.
The big picture
- The policy, effective in Addis Ababa since January 1, will extend to other major cities by July 1 and nationwide by January 1, 2026.
- All bank accounts must link to Fayda IDs by December 31, 2026.
- Over 11 million Ethiopians are already registered for Fayda, underscoring the initiative’s growing reach.
Driving the news
- The measure aligns with Ethiopia’s 2025-2030 digital government strategy.
- Support from organizations like DT Global, funded by the European Union, includes building EthioConnect, a data exchange infrastructure to bolster the digital ID program.
- The strategy has a €100 million (US$103 million) budget aimed at improving digital skills, cybersecurity, connectivity, and government services.
What they’re saying
- Authorities call Fayda a tool to streamline access to essential services and build a robust financial ecosystem.
- The Ethiopia ID authority highlights that the initiative aligns with international banking standards and fosters innovation critical for economic growth.
Source: Biometric Updates
