Limited access to banking services and digital infrastructure is keeping cash as the dominant payment method across Ethiopian markets, a recent study cited by Capital Newspaper shows. Among surveyed traders, 98 percent rely on cash as their primary mode of transaction.

The country has recently rolled out a National Digital Payment Strategy 2026–2030 and a national Instant Payment System, aiming to expand digital payments, improve interoperability across banks and mobile wallets, and increase access for merchants and consumers. Official data show annual digital transactions now exceed 18.5 trillion birr, mobile money accounts grew from 12.2 million in 2020 to 139.5 million by 2025, and mobile banking accounts rose from 9.1 million to 54 million. 

While the country is making efforts to expand digital payment systems, the report suggests that, under current market conditions, cash continues to offer traders a practical advantage.

The study highlights several factors behind the strong demand for cash. Limited access to banking services and digital infrastructure, such as internet connectivity and reliable electricity, in conflict-prone or underserved areas has led traders to rely on the liquidity they physically hold.

Additionally, during periods of supply disruptions and when goods need to be moved quickly between locations, cash enables faster transactions. Farmers and small-scale suppliers, in particular, show an immediate preference for cash to ensure timely sales of their products.