Somali tycoon Abdirashid Duale’s Dahabshiil targets Ethiopia expansion

Yusuf Abdulfatai -

Key Point

  • Dahabshiil Group expands into Ethiopia, partnering with M-PESA Safaricom-Ethiopia to enhance money transfer services amidst Ethiopia’s financial reforms.
  • The partnership aims to simplify money transfers for Ethiopians abroad and support regional economic growth.
  • Ethiopia’s financial reforms, including a new stock exchange and forex liberalization, attract diaspora investment and enhance economic opportunities.

Dahabshiil Group, a leading multinational money transfer conglomerate led by Somali multimillionaire Abdirashid Duale, is poised to significantly expand its presence in Ethiopia.

This move leverages the company’s existing partnerships, most notably a recent collaboration with M-PESA Safaricom-Ethiopia, a subsidiary of Kenya’s telecom giant Safaricom.

Dahabshiil Group expands with M-PESA partnership in Ethiopia

Dahabshiil Group’s partnership with M-PESA Safaricom-Ethiopia marks a key move to strengthen its operations in Africa, focusing on Ethiopia amid the country’s financial reforms.

The deal aims to make money transfers easier for the Ethiopian diaspora, a crucial market for Dahabshiil’s growth. This expansion highlights the company’s commitment to innovation and customer service, aiming to boost economic growth in the region.

Ethiopia is undergoing major financial changes, including the upcoming launch of its first stock exchange since the 1970s. This move, along with recent foreign exchange liberalization by the central bank, is designed to attract diaspora investment and simplify foreign currency accounts.

Positive developments for the diaspora

Abdirashid Duale, CEO of Dahabshiil Group, welcomed the Ethiopian government’s decision to allow the birr’s value to be market-determined. He stated, “It is a positive development for the diaspora who want to remit money to Ethiopia, and for its importers and exporters. We believe it will encourage the private sector and stimulate entrepreneurship.”

Duale emphasized Dahabshiil’s ongoing efforts to explore new ventures in Ethiopia, which align with the company’s goal of driving development and generating employment. He highlighted the potential for further cooperation with Safaricom, building on their existing partnership in Kenya. “I believe it’s in both our interests and those of our customers to cooperate where there’s a mutual interest,” he added.

Dahabshiil Group: Pan-African money transfer powerhouse

Dahabshiil Group, founded in 1970, operates in 126 countries, including 40 in Africa, making it one of the continent’s largest money transfer networks. The company offers essential financial services to businesses, NGOs, and international organizations.

CEO Abdirashid Duale, who took over from his father, has expanded the company into a global payments leader, focusing on accessible and efficient solutions for Africans.

Under his guidance, Dahabshiil has also increased its philanthropic efforts, supporting various community projects across Africa. With its recent expansion into Ethiopia, Dahabshiil continues to strengthen its position, contributing significantly to the region’s economic development.