Yonas Tibebu

Ethiopia has done the hard part: the rails are being built, transaction volumes are rising, and digital adoption is accelerating. But infrastructure alone does not create an innovation economy. It creates possibility . The real question now is simple and strategic: Who will build on top of the rails—and how easy will it be for them to do so? The answer lies in two levers that determine whether a national switch becomes a utility or a platform: shared services and API standardization . From Processing Transactions to Powering Ecosystems A national switch traditionally connects institutions and routes transactions. That is necessary—but no longer sufficient. The next phase is about becoming a platform for innovation , where banks, fintechs, and Payment Service Operators can build, launch, and scale services without reinventing the core infrastructure each time. Without this shift, the ecosystem risks a familiar pattern: Repeated investments in similar capabilities Fragmented...

Ethiopia’s digital financial ecosystem is evolving at remarkable speed. Mobile money accounts have surged exponentially, mobile banking continues double-digit growth, and digital payments are increasingly replacing traditional cash-based transactions. Yet, beneath this growth lies a fundamental tension: Are our regulatory frameworks enabling innovation—or unintentionally slowing it down? The Role of Regulation: Stability First Regulation exists for a reason. In financial systems, trust is everything. Without strong oversight, the risks are not theoretical—they are systemic. Regulators aim to ensure: Financial stability Consumer protection Fraud and risk mitigation Market integrity In a rapidly digitizing economy like Ethiopia, these priorities are even more critical. A single failure in a highly interconnected system could undermine public trust across the entire ecosystem. From this perspective, caution is not a weakness—it is a necessity . The Innovation Imperat...

Ethiopia’s digital payment ecosystem is entering a new phase. The foundational infrastructure is largely in place, transaction volumes are rising, and mobile-first adoption is accelerating. Yet, one critical question remains: Who will innovate on top of the rails? The answer lies in two powerful enablers: shared services and API standardization . Beyond Infrastructure: The Next Layer of Value National switches are often viewed as transaction processors, moving money from point A to point B. But globally, the most successful payment ecosystems have evolved beyond this role. They have become platforms for innovation . In Ethiopia, EthSwitch has already laid the groundwork through IPS, ETHQR, and other interoperable systems. However, as internal evaluations highlight, technical readiness alone does not guarantee adoption or innovation . To unlock the next wave of growth, the focus must shift from building rails → enabling ecosystems . What Are Shared Services in a National Switch...

Ethiopia’s digital payment ecosystem is evolving at an unprecedented pace. While the past few years have been dominated by interoperability, ensuring that banks, mobile money providers, and fintechs can communicate with one another, the next leap is orchestration : making the entire ecosystem move in harmony. Why Interoperability Isn’t Enough Interoperability lays the groundwork. It ensures that a transaction from Bank A can reach Bank B, or that a mobile wallet can connect to an ATM. But technical readiness alone doesn’t guarantee adoption. As EthSwitch’s internal reports show, having the rails in place is just step one,  real impact comes when these rails are actively used . For instance: IPS volumes have grown to 128 million transactions in FY 2024/25. ETHQR merchant penetration is expanding but unevenly across regions. Bulk payments, E-Mandates, and PISP use cases are technically ready but await activation by member financial institutions. These numbers highlight...

The global financial landscape has always been cyclical growth, disruption, and recovery. Yet, the speed and interconnectedness of today’s economy mean that shocks no longer stay local; they ripple across borders in seconds. From the 2008 financial meltdown to the COVID-19 liquidity crunch and the geopolitical tensions reshaping trade and currency flows, every crisis has left behind one undeniable truth: 👉 Resilience isn’t built during stability; it’s tested in uncertainty. 1️⃣ Fragmentation Is the New Reality Globalization once promised efficiency and open trade. Now, economic nationalism, sanctions, and regional conflicts are redrawing the map of financial connectivity. For countries like Ethiopia integrating into the global financial system while strengthening domestic infrastructure this fragmentation presents both vulnerabilities and opportunities . 2️⃣ Lessons from Past Crises Liquidity matters more than leverage. In every global shock, institutions that maintained ...

Cross-border payments are the arteries of global commerce yet, for decades, they’ve been slow, expensive, and opaque. From SWIFT messaging to correspondent banking chains, friction has long been part of the cost of doing business internationally. But the world is shifting. As globalization meets digital transformation, we’re entering the era of Cross-Border Payments 2.0  where technology, policy, and partnerships are converging to make money move as fast and easily as information. From SWIFT to Smart Connectivity For over 50 years, SWIFT has been the backbone of international payments reliable but not real-time. With multi-hop networks, settlement delays, and high fees, it wasn’t built for the instant digital economy. Now, new models are emerging : Instant payment corridors connecting domestic real-time payment systems. API-based connectivity between banks, fintechs, and switches. Interoperable regional networks like the Pan-African Payment and Settlement System (PA...