INTRODUCING | Fayda, the New Ethiopian National ID, to Be Primary Identification for Banking Services

Ethiopia has taken the next step to introduce a new national identification scheme after the government awarded a $300,000 contract to Madras Security Printers Private Limited for the printing of 1 million copies.

So far, according to the National Identity Program (NDIP), the process, which began in 2022, has registered over 3.5 million Ethiopians for the national IDs, referred to as Fayda The government aims for universal registration of all adults from the 120 million populace by 2025.

Currently, the most common form of identification in Ethiopia is referred to as the Kebele ID, estimated to cover 90-95% of Ethiopians, primarily designed to indicate a person’s residential address. This is used in conjunction with other functional identification documents like driver’s licenses and international passports to verify an individual’s identity.

The upcoming Fayda cards will be integrated into the existing functional ID systems utilized for various purposes, including the residence credential that Ethiopians commonly use for daily identification. These cards will be personalized to include biometric data for authentication to access a range of public services, and also perform identity verification for on-boarding to new bank accounts.

The National Bank of Ethiopia (which is the Central Bank of Ethiopia) and the NDIP aim to enroll all bank customers for digital identification during the 2023/2024 fiscal year. This initiative aims to expedite the government’s goal of achieving greater financial inclusion.

According to the Central Bank, the implementation of Fayda as the primary identification method for banking operations will lead to substantial enhancements in transparency, stability, and security within Ethiopia’s financial sector.

Presently, Know Your Customer (KYC) processes are predominantly reliant on paper-based and manual methods, and the National ID Program (NIDP) aims to substantially expedite these verification checks.

In a related development, though not directly connected to Fayda, a digital identity system for teachers and students is to be introduced using the Cardano blockchain for the Ministry of Education.

As reported by Fortune, a local media outlet, Input Output HK, the company behind the Cardano blockchain, was awarded the contract to provide this system to 5 million students and 750,000 teachers. This initiative aims to combat academic fraud and enhance the management of student records.