Ethiopia has introduced its Fayda National Digital ID system, marking a significant step in the nation’s digital identity infrastructure development. The National Bank of Ethiopia (NBE) has mandated that all citizens must register for the Fayda ID to open bank accounts, with implementation beginning in Addis Ababa on January 1, 2025, and nationwide rollout scheduled for January 1, 2026.
The NBE has issued a circular letter dated February 5, 2025, providing a temporary waiver until December 2026 for Ethiopian-born foreign nationals residing abroad to access banking services without the Fayda ID. Existing bank account holders will need to obtain their digital ID by December 2026 to maintain account access.
The Fayda ID system reaches beyond banking services into healthcare and education sectors. A pilot project has already integrated biometric data for 640,000 post-secondary students into the system, demonstrating the platform’s expanding capabilities. The integration builds upon earlier efforts by Ethiopia’s Ministry of Education to establish a comprehensive digital identity framework for students.
The implementation comes amid increasing challenges with identity fraud across Africa, where counterfeit national IDs, driver’s licenses, work permits, alien cards, and voter IDs have become more sophisticated through the use of generative AI technologies. The rollout follows the successful registration of over 7 million Ethiopian citizens in earlier phases of the program.
Ethiopia’s initiative reflects a broader continental trend, as at least 15 African nations have implemented or are developing national digital ID systems. Countries including Nigeria, Kenya, Benin, Botswana, Mozambique, Morocco, Namibia, Rwanda, Somalia, and South Africa are advancing similar frameworks. Nigeria has set an ambitious target of 180 million National Identification Numbers by 2026.
“The absence of a digital identity means that in South Africa I have an ID number, I have a tax number, I have one for registering a company, and another for being a hospital patient,” said SARS Commissioner Edward Kieswetter, speaking at a South African Institution of Taxation event in November 2024.
“The rollout of the Maisha card is a transformative step that has the potential to streamline identity verification, improve service delivery, enhance governance, and align Kenya with 21st-century digital advancements,” said Fred Nasubo, a lecturer at Taita-Taveta University.
Sources: Shega, The African Mirror, Financial Fortune Media
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