The unexpected story of the Ethiopian Father

The unexpected story of the Ethiopian Father. Digital lending has become very popular in Ethiopia. It means that loans are evaluated and given out quickly with the help of computers. To save money, the process of collecting loans is done automatically. 

But, it is important to have frameworks like credit scoring systems and trustworthy forms of identification that are available and work well. These help digital lending run smoothly. Ethio Telecom is a leader in digital lending, with two million people using airtime credit every month. 

In the past two years, Telebirr has gained 30 million users, 101 thousand agents, and 28 thousand merchants. It is connected with 19 commercial banks and has made USD 1. 95 million in foreign remittances. 

The new Telebirr Mela (microcredit) has given out 2. 1 billion Ethiopian Birr to 1. 4 million people and helped them save 1. 7 billion Ethiopian Birr in Telebirr Sanduq. Michu is a digital lending product in Ethiopia that does not require any collateral. It is powered by Kifiya Financial Technology's Qena. Michu was able to recover the 130 million birr that it had loaned.

Michu, which is a digital lending product from the Cooperative Bank of Oromia (COOP), has given out more than 200 million birr in loans since it started in May 2022. The loans are meant to help small businesses that sell goods on the side of the road or are very small.