Ethiopia Moves National Digital ID Into State-Owned Enterprise Under Sovereign Wealth Fund

August 5, 2026
By Mintesinot Nigussie

Ethiopia has transformed its National ID Programme into a state-owned digital infrastructure company under Ethiopian Investment Holdings (EIH), in a move aimed at commercialising the country's digital identity platform and expanding its role in Africa's fast-growing digital public infrastructure market. The new enterprise, named Faydaverse, will assume responsibility for developing and operating digital public infrastructure services built around the Fayda national digital identity system. The company becomes the latest addition to the portfolio of Ethiopian Investment Holdings, the state investment fund overseeing many of the country's strategic commercial assets.

The restructuring marks the programme's transition from a government project into a commercially managed enterprise after five years of implementation, as policymakers seek to generate revenue from digital identity infrastructure while maintaining its role as a national public service. Faydaverse will provide digital identity services for government agencies, financial institutions and private businesses, while developing products including electronic Know Your Customer (eKYC), Single Sign-On (SSO), digital credential wallets and identity-based digital public infrastructure linking identity, payments and consent-based data sharing.

The enterprise enters the market with one of Africa's largest digital identity databases. According to programme figures, the Fayda system has enrolled 50 million residents, deployed more than 12,000 biometric registration kits, issued over 15 million digital identity credentials, integrated with more than 150 organisations through eKYC services and processed about 190 million authentication transactions. Officials said the new structure is intended to strengthen corporate governance, attract investment and allow the organisation to operate with greater commercial flexibility while continuing to support Ethiopia's digital transformation agenda.

The move reflects a broader shift in the government's approach to digital public infrastructure, treating national digital identity as an economic asset capable of supporting financial inclusion, digital commerce and public service delivery. By bringing Faydaverse under Ethiopian Investment Holdings, authorities are positioning the enterprise alongside other state-owned commercial entities expected to operate on commercial principles while advancing national development objectives. Chief executive officer Yodahe Zemichael said the organisation's evolution built on decisions taken during the early stages of the Fayda programme, including prioritising an inclusive identity system and authentication services before mass enrolment had been achieved.

"Today, when officially marking Faydaverse as a DPI enterprise under EIH, you can see that those ambitious, bold yet impactful early beginnings are still with us," he said. EIH chief executive Brook Taye said digital public infrastructure had become an increasingly important driver of economic growth, financial inclusion and service delivery. "The establishment of Faydaverse as a State-Owned Enterprise and its inclusion in the Ethiopian Investment Holdings portfolio represent an important step in strengthening one of Ethiopia's most strategic digital assets," he said. Beyond the domestic market, Faydaverse plans to offer advisory and implementation services to governments and institutions developing digital public infrastructure across Africa. The company said it intends to leverage Ethiopia's experience in building a large-scale digital identity system to support regional knowledge sharing and technical partnerships, with potential collaboration aligned with continental initiatives including Smart Africa and the African Continental Free Trade Area.

Source: FSX Business News