Ethiopia has introduced a mandatory national digital ID, known as Fayda, for banking transactions in the capital city of Addis Ababa. The policy will be implemented in phases until December, 2026, allowing citizens to acquire the Fayda ID. Currently, over 11 million registrations have been recorded. The policy aims to improve financial inclusion and reduce banking fraud.
The Fayda ID is a crucial component of Ethiopia’s digital transformation drive and its five-year digital government strategy. The strategy, supported by DT Global and the European Union, aims to enhance digital services, improve connectivity, and strengthen cybersecurity. The digital government strategy is expected to promote economic growth and innovation.