Ethio Telecom and Awash Bank today announced the launch of “Tila,” a new non-collateral digital microfinance and device financing service delivered through the telebirr mobile money platform.
The initiative is designed to expand access to digital financial services across Ethiopia, particularly for underserved communities, while accelerating the country’s transition toward an inclusive digital economy.
The new Tila service introduces digital access to non-collateral microcredit, micro-savings, salary-based loans, SME financing, and smartphone device financing.
Key Features of the “Tila” Digital Financial Services:
Tila Micro Saving Service
Customers can save any amount via telebirr with the choice of interest-bearing or non-interest-bearing accounts.
Tila Personal Micro Credit
Credit limits are determined through an AI-assisted credit scoring model based on telebirr usage. Individual customers can access:
- Up to 5,000 birr (15 days)
- Up to 12,000 birr (40 days)
- Up to 16,000 birr unsecured microfinance (75 days)
Employees’ Salary Loan
Employees in public and private institutions whose salaries are paid via telebirr or Awash Bank can access salary-based digital loans of up to 1 million birr, equivalent to six months’ salary, with a repayment period of 16 months.
SME Microfinance
Micro, Small and Medium Enterprises (MSMEs), merchants, and agents can access non-collateral digital credit based on transaction volumes:
- 50,000 birr (1-month term)
- 90,000 birr (3-month term)
- 150,000 birr (6-month term)
An annual credit pool of over 2 billion birr has been allocated for Tila’s SME and individual financing services.
Device Financing Service
Ethio Telecom and Awash Bank have introduced a digital device financing program enabling customers, especially in agrarian and rural communities, to acquire smartphones and telecom devices through long-term payment plans. The initiative aims to increase smartphone penetration and reduce barriers to digital finance participation.
Cardless ATM Withdrawals and School Fee Payments
telebirr users can withdraw cash from Awash Bank ATMs without a physical card. During pilot testing, the service supported more than 92,600 transactions, with over 97.3 million birr withdrawn. Awash Bank’s School Pay platform has also been integrated into the telebirr SuperApp, allowing seamless school fee payments.
Driving Digital Inclusion Across Ethiopia
Ethio Telecom’s introduction of znexus cloud-based smart devices at low cost, combined with AI-driven microfinance services, reflects its broader commitment to bridging the digital usage gap. Through continued partnerships with financial institutions, the company aims to strengthen digital accessibility, enhance digital adoption, and improve the daily lives of communities in both urban and rural areas.
The overall financing agreements supporting the Tila services amount to a combined 2 billion birr, further strengthening the initiative’s national impact and rollout capacity.
