Ethiopia is on the cusp of a healthcare revolution. The Ministry of Health (MoH) is heeding the call to action on Health for All through Responsible Digital Payments and in collaboration with key financial and development partners, launched a transformative nationwide Digital Health Payment Initiative (DHPI) in August 2024. If successful, this initiative could radically reshape the country’s health sector by making health payments more efficient, transparent, and inclusive.
A pivotal point in this initiative is the signing of Service Level Agreements (SLAs) between the MoH and eight of Ethiopia’s leading financial service providers. These agreements, supported by the National Bank of Ethiopia, the Ministry of Finance, and the Health Insurance Services, as well as UNDP-hosted Better Than Cash Alliance, marks a crucial milestone in Ethiopia’s journey toward the full digitalization of healthcare payments.
The SLAs with financial service providers signal an appreciation of the harmonization required to strengthen and build a sustainable healthcare system. It also signifies a broader commitment to digitization, aligning closely with Ethiopia’s National Digital Payment Strategy (NDPS 2021-2024). Since its implementation, Ethiopia has witnessed rapid growth in digital financial services, with over 20 million new mobile money accounts opened between 2021 and 2022. By June 2024, the total number of mobile money accounts had reached nearly 107.5 million, solidifying the country’s transition to a more digital economy.
The success of Ethiopia’s digital financial services has provided a strong foundation for the health sector to integrate similar innovations. By utilizing mobile money and digital banking services, the MoH aims to reduce inefficiencies in financial transactions, ensuring that healthcare providers and beneficiaries experience seamless payment processes.
MoH is championing institutional leadership through the DHPI to ensure inclusive health services by leveraging responsible digital payments and DFS. Recognizing the transformative potential of digital finance, MoH has been working to integrate responsible digital payment solutions into three key areas:
The Service Level Agreement will see eight leading financial service providers engage in the nationwide pilot.
As Ethiopia prepares for the next phase of its digital transformation journey, NDPS 2.0, initiatives like the DHPI offer invaluable lessons for future advancements. The upcoming nationwide pilot will generate critical insights into digital payment adoption, particularly in rural communities. It will also assess the accessibility and effectiveness of these solutions for women, youth, and marginalized populations, ensuring that Ethiopia’s digital transformation is equitable and inclusive.
This milestone marks not just a step forward in digitizing health payments but a reaffirmation of Ethiopia’s commitment to leveraging digital innovation for better healthcare access. The long-term vision is to scale this initiative across all health facilities and regions, embedding responsible digital payments as the standard in Ethiopia’s health sector. With strong leadership from the MoH and committed financial sector stakeholders, Ethiopia is poised to harness digital solutions to transform lives, strengthen resilience, and build a healthier, more inclusive nation.