Addis Ababa — December 5, 2025

M-PESA Ethiopia has accused Ethio Telecom of blocking mobile data access to its newly launched telecom-agnostic financial service, M-PESA ለሁሉም (Lehulum), a platform unveiled on December 1 with the promise of allowing any Ethiopian—regardless of telecom provider—to use M-PESA’s digital financial tools.

In a public statement released today, the company said that customers trying to access the app via mobile data networks operated by Ethio Telecom are currently unable to log in, transact, or retrieve their money. According to M-PESA Ethiopia, the disruption affects only mobile data usage; Wi-Fi and other network types appear unaffected.

The company described M-PESA Lehulum as a “revolutionary telecom-agnostic, customer-centric financial services app” fully approved by the National Bank of Ethiopia (NBE) and the Information Network Security Administration (INSA). The service was launched as an industry-shifting platform that breaks away from the traditional requirement of telecom-specific mobile money. Instead, users can sign up using any phone number, authenticate via the national eKYC system, and access services ranging from money transfers and bill payments to merchant transactions and overdraft facilities.

A Serious Disruption for Users

The alleged blockage has raised concerns among users who rely on mobile data as their primary means of internet connectivity. With smartphone penetration increasing and mobile data being the dominant mode of access for millions, the disruption effectively renders the app unusable for a significant share of its target market.

M-PESA Ethiopia said the issue has left customers “unable to log in, transact, or retrieve their funds,” creating operational delays only days after the high-profile launch.

Engagement With Regulators Underway

In its statement, M-PESA Ethiopia emphasized that the matter has been taken to regulators for urgent resolution. The company said it is “working diligently to maintain access” and restore full digital reachability while engaging with authorities to address the issue.

While the statement stops short of directly accusing Ethio Telecom of intentional interference, the implication is clear: the disruption appears linked to mobile data infrastructure controlled by the state-owned operator.

Industry insiders note that this incident comes at a time of intensifying competition in Ethiopia’s digital finance landscape. With more than 107 million registered wallets as of mid-2024 and increasing mobile money usage, the ability to offer cross-network services could shift market power dynamics significantly.

Regulatory Implications

M-PESA Ethiopia underscored that the Lehulum service is fully licensed by the NBE under the Payment Instrument Issuer (PII) framework—an important legal detail given Ethiopia’s hyper-regulated financial sector.

Any prolonged disruption, analysts warn, could invite scrutiny regarding competition, fair access to digital infrastructure, and consumer protection. Industry observers are waiting to see whether regulators, including NBE and INSA, will issue clarifications or directives in the coming days.

A Developing Story

As M-PESA continues discussions with regulators, customers remain in limbo, awaiting a resolution that could shape the future of telecom-agnostic digital finance in Ethiopia.

This incident marks one of the first major tests of Ethiopia’s evolving digital finance framework—highlighting the challenges of interoperability, competition, and infrastructure access in a rapidly liberalizing market.