Ethiopia has introduced a new policy requiring the use of its national digital ID, Fayda, for all banking transactions. This policy, which came into effect in Addis Ababa on January 1, 2025, will expand to other major cities by July 1, 2025, and nationwide by January 1, 2026. All bank accounts must be linked to Fayda IDs by December 31, 2026.
As of now, over 11 million Ethiopians are already registered for Fayda, highlighting the initiative’s growing success. The implementation of this measure is part of Ethiopia’s broader digital government strategy for the 2025-2030 period.
The rollout is supported by organisations such as DT Global, funded by the European Union, and will include the development of EthioConnect—a data exchange infrastructure designed to strengthen the digital ID program. With a €100 million (US$103 million) budget, the strategy aims to enhance digital skills, cybersecurity, connectivity, and government services.
Authorities view Fayda as a critical tool to streamline access to essential services and create a more robust financial ecosystem. The Ethiopian ID authority emphasises that the digital ID initiative is in line with international banking standards and will help drive innovation and economic growth.
