Safaricom has launched a new stock trading service on its M-Pesa mobile money platform, a development that could signal future opportunities for Ethiopia’s emerging digital finance and capital markets.
The Kenyan telecom operator announced on Tuesday that the product, named Ziidi Trader, allows M-Pesa users to buy shares listed on the Nairobi Securities Exchange directly through their mobile phones, without opening a brokerage account. The move is expected to attract millions of small retail investors into Kenya’s capital market.
M-Pesa, launched in 2007, has grown into one of the world’s most widely used mobile financial platforms, with 35 million users in Kenya and services ranging from money transfers to savings and investment products.
Safaricom said Ziidi Trader has already contributed significantly to trading activity, accounting for about 40 percent of transactions at the Nairobi bourse since it went live this week.
While Safaricom did not confirm whether the service will expand into other markets, the development may have an impact on Ethiopia, where digital finance reforms are accelerating and demand for accessible investment platforms is rising. Similar services could play a major role in Ethiopia by increasing retail participation in capital markets and supporting financial inclusion, particularly as the country advances its broader economic liberalization agenda.
Safaricom Ethiopia officially launched its M-PESA mobile financial services in August 2023 following the receipt of a Payment Instrument Issuer License from the National Bank of Ethiopia the same year.
Ethiopia opened the door for foreign investors to invest in mobile money services when it approved a new National Payment System Proclamation in December 2022. The Proclamation, Proclamation No. 1281/2022, allows foreign investors to invest in payment services which are not classified as banking services. Accordingly, foreign nationals can invest as a payment instrument issuer or a payment systems operator in Ethiopia or establish a subsidiary which will be licensed as a payment instrument issuer or payment system operator.
Source: Reuters
Additional source: 2Merkato Archives
