Ethio Telecom and Awash Bank Launch ‘Tila’ to Boost Digital Inclusion in Ethiopia

In a significant step toward advancing financial inclusion and digital accessibility, Ethio Telecom has teamed up with Awash Bank to introduce Tila, an innovative digital credit, savings, and device-financing service. This new feature, seamlessly integrated into Ethio Telecom’s Telebirr mobile money platform, leverages AI-driven credit scoring to provide non-collateral loans. With this collaboration, the two organizations aim to bring transformative financial solutions to underserved communities across Ethiopia.

AI-Based Credit Scoring Opens New Financial Opportunities

The Tila service stands out for its use of advanced AI-powered credit scoring technologies, making it possible to offer loans without the need for collateral. Awash Bank has allocated an impressive ETB2 billion (approximately US$13 million) in annual credits for Tila, showcasing its commitment to this groundbreaking initiative. Individual micro-loans of up to ETB16,000 are available, while Micro, Small, and Medium Enterprises (MSMEs) can access business loans of up to ETB150,000. With flexible repayment terms ranging from one to six months, these loans aim to boost economic activity both for personal users and businesses.

Moreover, salaried employees receiving payments through Telebirr or Awash Bank accounts are eligible for salary-based loans of up to ETB1 million. This collaboration isn’t just about credit—it’s also about integrating technology into financial solutions. For example, a device financing component allows customers to acquire smartphones through instalment plans, providing access to mobile devices for individuals who might otherwise be unable to afford them upfront. This aspect of Tila demonstrates Ethio Telecom’s commitment to increasing smartphone penetration in Ethiopia, a crucial element for bridging the digital divide.

Tila’s Focus on Digital and Financial Inclusion

One of the key objectives of the Tila service is to promote digital and financial inclusion, particularly in rural and underserved areas. By making capital accessible to individuals and small businesses, the service aims to enable economic growth beyond major urban centers. Telebirr, Ethio Telecom’s highly successful mobile money platform, has been a critical element in the operator’s strategy. With over 57 million users, Telebirr has processed more than ETB31.6 billion in digital loans and ETB30.3 billion in savings since its launch, underscoring its role as a cornerstone in Ethiopia’s digital financial ecosystem.

In addition to offering straightforward loans, Tila facilitates broader access to essential banking services. Early adoption of Telebirr-based cardless ATM withdrawals through Awash Bank’s network has already gained traction. During the pilot phase alone, over 92,000 transactions were completed, highlighting the potential for further adoption of this seamless and secure financial solution.

A Vision for Ethiopia’s Digital Future

Tila is part of Ethio Telecom’s larger strategy to extend its digital finance offerings and reduce the barriers to smartphone ownership. By introducing innovative services like this, the company supports the government’s goal of fostering greater financial participation and connectivity nationwide. This collaboration with Awash Bank demonstrates the power of partnerships in driving forward inclusive financial technologies that benefit a diverse population, from individual consumers to small businesses.

As Tila gains momentum, it has the potential to redefine access to financial services in Ethiopia while positioning Ethio Telecom and Awash Bank as leaders in digital innovation. Enhanced access to credit and digital tools could empower individuals and enterprises to thrive in an increasingly connected world, setting the stage for a more inclusive and economically robust Ethiopia.