Kifiya Lehulu, a financial technology private company, entered into a contract with the Ministry of Communication and Information Technology (MoCIT) and the Ethiopian  Broadcasting Corporation (EBC) to set up an electronic system to collect icense fees from one million TV owners in Addis Ababa this year. .

Lehulu seeks to start its collection from March 16 to the end of this year and this service would be given annually.

According to Berhane Kidanemariam, General Manager of EBC, TV license and registration fee is subcontracted because the former method which was going to customer’s homes rendered the task difficult to manage. Now with the introduction of this system, the entitlements, EBC gets  from each TV owner will be 60 Birr per annum, out of which 10 Birr per customer goes to the pocket of Lehulu for the service it provides. Failing to pay the annual dues results in  measures including fine and confiscation of their TV sets basing the existing laws.

According to Senait Haile, marketing and promotion director at EBC, some 13 million Birr was generated from license and registration fees last year and is  targeting to collect some 60 million this year.

Munir Duri, Chief Executive Officer (CEO) of Kifiya Lehulu, noted Lehulu has 34 centers in the capital delivering electricity, telephone, and water bills and these same centers are going to collect TV registration and license fees. It has 600,000 customers and 1.2 million Birr is transacted per month.

Moreover, at present Lehulu engaged itself in mobile banking activities and some 20,000 safety net beneficiaries were selected to receive monthly vouchers through an e-payment systems. This project is now serving the Amhara credit and saving microfinance institution customers.

TV license fee is considered as a tax for the purpose of funding public broadcasting, which in turn allows public broadcasters to transmit television programs.

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Source: The Reporter