Regulating Mobile Money Service and Competition in Ethiopia: Emphasis on the Provision of Mobile Network Operator-Led Mobile Money Service
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Date
2023-06
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Addis Ababa, University
Abstract
Mobile Money Service (MMS) is now one of the leading digital economy transformation
platforms and contributes to investment, innovation and economic growth. This thesis is
concerned with assessing the regulation of MMS and competition, focused on Mobile
Network Operator (MNO)-led MMS. The author employed a qualitative research approach in
analyzing the pertinent laws with descriptive and exploratory methods of data analysis.
Accordingly, the research reveals that the wording of the competition law does not fit the
digital age and financial technology tools such as MMS. Further, the jurisdiction over anti-
competitive acts on MMSs sector by the National Bank of Ethiopia and the dissolved
authority for competition administration and enforcement which is now under the executive
organ (Ministry of Trade and Regional integration) with a desk status is unclear. Moreover,
regardless of the absence of promulgated parameters, potential „abuse of market dominance‟
and some „restrictive agreements‟ by Telebirr is creating a burden to other players in the
MMS ecosystem. Therefore, the thesis generally recommends that first; Ethiopia must have a
separate and comprehensive financial sector policy which clearly incorporates competition
policy, along with establishing a national competition council and promoting competition
knowledge. The country also needs to revisit the competition law in terms of digitalization, as
well as the need to have an institutional and regulatory impact assessment including with
market study of the MMS sector such as the market share of Telebirr, and finally, particular
study should conduct whether the need to revive the dissolved authority as an independent
institution or as to strengthen within its current position.