• Ethio Telecom launched Tila to offer microloans and smartphone financing. It targets rural and urban users through telebirr.

• The service uses AI to assess creditworthiness based on transaction history. It includes savings, salary loans, and MSME financing.

• Tila supports Ethio Telecom’s 2028 digital strategy. With 57.59 million telebirr users, it expands beyond telecom into fintech.

Ethio Telecom has launched ‘Tila’, a non-collateral credit and device financing which allows customers to access non-collateral micro-credit and acquire smartphones via long-term payment plans, it announced on November 20. Launched in partnership with Awash Bank, a pioneer in Ethiopia’s private banking sector, the service expands financial access for individuals in both rural and urban areas—including government and private employees, MSMEs, and merchants.

Assessed through an AI-driven credit scoring model based on telebirr transaction history, the offering includes micro-savings, personal and salary loans, non-collateral MSME financing, and device installment plans to boost smartphone ownership in underserved communities. Further enhancing convenience, telebirr offers cardless ATM withdrawals through Awash Bank, as well as integrated school fee payments via the telebirr SuperApp.

Ethiopia’s digital economy is rapidly expanding, with projections that it will contribute 5.3% to GDP in 2025, according to the Digital Impact Alliance. By 2024, over 40 million internet users were recorded, and mobile financial services adoption skyrocketed, with mobile money users growing from zero to 60 million, according to Globe Banner.

This move unlocks a new revenue stream for Ethio Telecom and also aligns with its Next Horizon: Digital and Beyond 2028 Strategy. With over 57.59 million telebirr subscribers, the company is extending its influence beyond traditional telecom services, positioning itself as a key player in digital and financial innovation. Its recent launch of affordable ‘znexus’ cloud-based smart devices further supports device accessibility.

Hikmatu Bilali