Finclusion Lab | Ethiopia

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Country Summary

Ethopia - Key Highlights

•25% of access points are present in Addis Ababa, making it the main hub for financial services in Ethiopia.

•Top 2 regions have around 50% of the country’s total access points.

•Commercial banks & microfinance institutions (MFIs) together constitute 91% of the country’s access points.

•Only 9 financial companies have more than 50 access points in total across the country.

•Addis Ababa has the highest number (2.1) of access points per 10,000 adults (18+ years) among all regions in Ethiopia.

Geography

11 regions
73 zones
675 woredas

Supply

3 institution types
32 financial services providers (FSPs)
1,858 total access points

Demand

90.2 million total population
45.3 million male population
44.9 million female population
16.2 million urban population
78.5 million rural population
7.61% unemployment rate

Data Fields

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Supply Data

Standard Data Field	Available(Yes/No)	Actual Data Field	Example Value
Country Name	Yes	Country	Ethiopia
Geographic Level 1	Yes	Region	Addis Ababa, Afar
Geographic Level 2	Yes	State	Region 14
Geographic Level 3	Yes	District	Bole, Kirkos
Institution Type	Yes	Type of Institution	Commercial Banks, Mobile, MFI
Company Name	Yes	Name of the Company	Bank of Abyssinia, Abay Bank
Branch Name	Yes	Name of the Branch	Arada, Abakoran
# of Locations	Yes	# locations	1,858
Name of the Source	Yes	Source	Direct sourcing, website
Description of the Source	Yes	Description	Direct sourcing, website

Demand Data

Standard Data Field	Demand data Available(Yes/No)	Actual Data Field	Example Value
Country Name	Yes	Country	Ethiopia
Geographic Level 1	Yes	Region	Addis Ababa, Afar
Geographic Level 2	Yes	State	Region 14
Geographic Level 3	Yes	District	Bole,Kirkos
Population	Yes	Total Population	90.1M
Adult Population	No	Population Adult	N/A
Urban Population	Yes	Population Urban	17.3M
Rural Population	Yes	Population Rural	72.5M
Male Population	Yes	Population Male	45M
Female Population	Yes	Population Female	44.8M
Name of the Source	Yes	Source
Description of Source	Yes	Description	Government census

Policy Makers

Policy makers and regulators are typically interested in macro expansion of inclusion, current progress of inclusion, risk mitigation, and the stability and soundness of the market. Demand indicators available on FINclusion Lab can also be used to highlight demographic strands who are excluded and to analyze visible gaps in inclusion.

Which regions have a lower number of access points per 10,000 people and need a substantial boost in financial infrastructure?

Based on the adult population in regions with lower numbers of access points such as Afar, Somali, and SNNPR, new policies, incentives and regulations can be framed to encourage financial services providers (FSPs) to start operations in these regions.

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Which regions could potentially be targeted by mobile money agents to drive higher financial inclusion?

Overall, mobile money agent penetration remains poor in Ethiopia. However, mobile money has a significant presence throughout the center of the country. Expansion of telecom infrastructure such as cell towers may create significant opportunities in regions to the East and the West of the country.

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What are key regional variations in market penetration across different types of financial services providers (FSPs)?

While commercial banks have a broad geographical distribution (with the exception of most zones in the Somali region), mobile money agents are limited to zones in the Northcentral area of the country. There is a significant potential for expansion of mobile money services, particularly in the Western part of the country.

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FSP

Financial services providers (FSPs) are interested in gaps in their personal operating markets, but will also find the competitor analysis possible using FINclusion Lab dashboards compelling. Strategic use of information will allow FSPs to better balance risk and growth based on their individual organizational strategies.

Which provinces might be targeted for service line expansion, and promotional campaigns on present offerings?

Based on high population density and moderate to good representation of service providers, Tigray and SNNPR regions would be ideal for service line expansion and promotional campaigns. These efforts could reach consumers who have access to financial services but lack awareness.

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Funders

Funders have many interests in common with regulators (high level expansion, inclusion within existing systems, risk mitigation, and the stability and soundness of the market) but operate differently. Funders are often interested in major “last mile” projects , and some operate as local “market facilities” to support and improve market function.

In which regions can donor funding really help improve financial inclusion?

Somali and Afar regions are highly underrepresented in terms of number of financial service access points. Funder intervention could assist in development of financial inclusion infrastructure to bring inclusion to people in these regions.

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In which regions is the lack of transportation infrastructure an obstacle to progress toward financial inclusion?

Outside of the North-western area of the country, much of Ethiopia lacks infrastructure, and highways in particular. Ethiopia has a majority of rural population living in areas even less likely to be served by modes of transport. Expansion of mass transport in the South-east of the country could facilitate better access to financial services in underserved regions such as Somali.

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Sub-national Analysis

Description:

FINclusion Lab's geospatial maps depict the distrubtion of financial access points at several levels of administrative divison. Users can click different options under the Geography heading to select different levels of administrative division. See the below images for examples of analysis at the first and second levels of administrative division.others.

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Observations:

Addis Ababa has the highest number of financial access points in the country and 79% of the access points in Addis Ababa are operated by commercial banks.

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Ethiopia

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Ethopia - Key Highlights

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