Ethiopia has officially launched the Fayda digital ID system, a foundational digital identity platform developed in collaboration with TECH5 and Visa. The platform incorporates advanced biometric authentication based on TECH5’s patented multi-biometric solutions. The Fayda system was formally introduced at the 2025 ID4Africa conference in Addis Ababa, where representatives from the National ID Program (NIDP), TECH5, and Visa demonstrated its functionality.
As of this month, more than 15 million Ethiopians have enrolled in the system. Prior to the operationalization of Fayda, there was no foundational ID in Ethiopia. The de facto foundational ID is an ID issued by the lowest administrative unit called Kebele. However, there is no centralized system to verify the authenticity of Kebele ID and hence, Kebele ID are open for forgery and alterations.
The success of the Fayda system has already begun to attract attention from other African countries exploring national digital ID strategies. Ethiopia’s Fayda digital ID program successes were in the spotlight on the first day of ID4Africa 2025 in the country’s capital Addis Ababa. A panel discussion moderated by the Executive Director of the National Digital ID program (NIDP), Yodahe Zemichael, explored the tough, yet rewarding journey of a MOSIP-based identity program which now has more than 15 million citizens registered for it.
The Fayda platform is designed to support real-time identity authentication and eKYC processes across multiple sectors, including finance, healthcare, education, social services, and e-commerce. It supports both smartphone-enabled users and individuals without digital access through a “custodian” wallet system. The Cooperative Bank of Oromia is the first financial institution to integrate with the Fayda Wallet, enabling new account openings via biometric eKYC verification without requiring physical documents.
Key Components and Features of Fayda Digital ID
Fayda (Amharic: ፋይዳ, lit. 'value, importance'; sometimes informally called Fayda ID or Fayda Number) is a 12 digit unique identification number issued by National ID Program (NIDP) of Ethiopia to residents who fulfill the required procedures put in place by NIDP digital identification number.
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Zemichael positions Fayda as a key pillar in the “Ethiopia Stack,” and notes that the country’s authentication system now serves 55 service providers.
The Digital Ethiopia 2025 strategy is bold and ambitious. “As we implement our digital ID program, we must ensure that it is grounded in ethical considerations.
Alemayehu also made the connection between the digital ID program and the country’s smart cities initiative, insisting that digital ID is one of its pillars.
“Addis Ababa, for instance, has adopted a new civil and family registration law. This enables both platforms, that is civil registration and digital ID, to work together in a way that strengthens the overall digital ID system. Our agency is responsible for civil registration across the city.
Alemayehu added: “We’ve also rolled out a resident ID platform that’s integrated with civil registration.
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“In digital payments, we’ve seen great progress. With Ethio Telecom and Safaricom now in operation, around 86 to 90 million people are using mobile devices for digital transactions. This is a vital aspect of empowerment.
“Yes, birth registration is the cornerstone of any identity management platform.
Before the program was constituted under the Office of the Prime Minister, it was housed at the Ministry of Peace. After its re-establishment under the Office of the Prime Minister, the program initiated the drafting and adoption of the Ethiopian Digital Identification Proclamation 1284/2023.
Data Protection and Ethical Considerations
The Ethiopian Digital Identification Proclamation 1284/2023 provides the rules on personal data protection. This proclamation has personal data protection elements embedded in to it. This proclamation also stresses on the digital identifier aspect of "Fayda" and its inclusive aspects where a registrant can be onboarded even if they lack a proof-of-ID nor proof-of-address through an 'introducer' scheme.
It recognizes that personal data belongs to the resident. Based on the principle of data minimization, the proclamation prohibits the collection of ethnic origin, blood group, DNA, religious belief, health record and criminal record. Collecting more than the required data is subject to criminal liability.
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The proclamation asserts that the data collected for identification shall only be collected after the resident fills out and signs on a consent form. Disclosure of data without the consent of the resident is prohibited. Disclosing any resident data is subject to up to 8 years rigorous imprisonment.
NIDP is mandated with ensuring the confidentiality of personal data throughout the cycles of collection, storing, authenticating and processing of personal data. Service providers, termed as Relying Parties under the proclamation shall comply with the principle of purpose limitation.
Collaboration and Knowledge Exchange with Zambia
On September 29, 2025, the Government of Zambia, through its Ministry of Home Affairs and Internal Security and the Smart Zambia Institute, formalized a partnership with the National ID Program (NIDP) of the Federal Democratic Republic of Ethiopia. As we witnessed officials from Zambia and Ethiopia signing the cooperation agreement in Addis Ababa, it was clear this was more than a ceremonial handshake, it marked the beginning of a shared digital journey.
One of the most rewarding aspects of this partnership has been the open exchange of knowledge, from sharing lessons on Zambia’s journey to integrate platforms for e-services, to learning how our Ethiopian colleagues designed Fayda to be inclusive from the start, ensuring it is accessible even in rural areas.
Zambia’s work on digital payments and e-services aligned well with Ethiopia’s deep experience in foundational ID. As we interacted, I realized that experiences from both countries complemented each other.
In both Zambia and Ethiopia, the governments are taking a use case-driven approach, linking ID registration and verification to tangible services such as social protection, mobile money, and civil registration. Across Africa, the conversation on digital transformation is shifting.
This cooperation also complements Agenda 2063, the African Union’s vision of a digitally connected and integrated continent. For us, this partnership is more than a milestone.
At its core, an ID solution must be built for those it serves, prioritizing their needs and aspirations, as noted in the UN’s Universal DPI Safeguards Framework. Digital ID is a foundational layer of a digital public infrastructure (DPI) approach, enabling trusted data exchange and transactions between parties.
This requires more than just good technology - it demands a thoughtful, multi-faceted approach to design, implementation, and governance that recognizes the diverse realities of everyone who relies on the digital ID system. This is made up of four critical enablers: technology, policies and regulation, oversight and accountability, and human capacity.
Trust, inclusion, and transparency are the core of Ethiopia’s approach to its digital ID system - FAYDA. Ethiopia’s National ID Program (NIDP), in charge of deploying FAYDA, has been exploring ways to better evaluate its design - understanding where the system is strong and where improvements are needed to support future growth and ensure positive outcomes for people.
In early 2025, NIDP leveraged the Digital ID Assessment, developed by the Digital Impact Alliance (DIAL), as part of its commitment to continuous learning and improvement.
Impact on Marginalized Populations
Imagine a mother in rural Ethiopia who has never been able to open a bank account before, now in a position to receive a loan to start her small business. Picture a refugee who, after fleeing conflict and spending years in a refugee camp, finally has a digital ID that grants access to healthcare and other essential services outside the refugee camp. Envision a homeless, internally displaced person in Addis Ababa, who lost all paper-based documents, but is now digitally documented and able to access social protection programs, including shelter and other government services.
These are not dreams anymore - they are the realities that Ethiopia’s new national digital ID system, Fayda, is beginning to unlock. The World Bank’s Ethiopia Digital ID for Inclusion and Services Project is providing $350 million in support of the National ID Program (NIDP), which is bringing this transformation to life. Launched in 2024, the project aims to provide digital IDs to 90 million people, including refugees, ensuring that all legal residents living in Ethiopia today have access to essential services and are included in the country’s economic growth.
Currently, millions of Ethiopians and legal residents lack identification, preventing them from participation in the formal economy, such as opening bank accounts, accessing health insurance, and even receiving safety nets payments. Meanwhile, systemic vulnerabilities are being exploited, leading to increased instances of double benefit collection within social programs and the creation of ghost accounts across government agencies, ultimately impacting resident welfare. Thanks to extensive stakeholder engagement and careful planning, along with insights from global best practices, Fayda ID has been designed with innovative features to ensure it is accessible and inclusive for everyone, even the most marginalized population.
Fayda is fostering a sense of belonging and unity and also revolutionizing how people in Ethiopia are able to prove who they are when interact with both government and private sector services.
To close this gap, the Fayda ID project is intentionally prioritizing women in its registration process. In Ethiopia, women are 15% less likely to possess any form of identification compared to men, according to the 2024 ID4D study on the ‘Gender Gap in ID Ownership in Ethiopia. Through community mobilization, partnerships with women’s groups, and the training of female registration officers, the project ensures women do not face the same barriers as with the paper based national ID (Kebele).
Table: Summary of paper-based national ID system (Kebele ID), prior to the Fayda ID
| Feature | Description |
|---|---|
| Issuance | Issued by the lowest administrative unit (Kebele) |
| Verification | No centralized system to verify authenticity |
| Security | Open to forgery and alterations |
| Accessibility | Unequal access, especially for women |
Following a data-sharing agreement signed between the National ID Program (NIDP), UNHCR, and the Refugee and Returnee Service (RRS) in January 2024, efforts are underway to enroll more than one million refugees and host community members into the Fayda ID system. Ethiopia is home to over a million legally residing refugees, many of whom have expired ID cards that severely limit their access to essential services. This will unlock access of refugees to healthcare, education, telecommunications, and economic opportunities. It also intended to simplifying freedom of movement for refugees within Ethiopia.
Millions of people in Ethiopia are currently displaced, many living in informal settlements and urban areas, especially in regions like Oromia, Tigray, and Somali. Due to the loss of personal documents during displacement, accessing services has been impossible for many. Fayda ID is changing that. Through innovative outreach, including the open-source platform ‘OpenG2P’ that enables governments and humanitarian organizations to deliver critical social benefits directly to those who need them, the NIDP is bringing digital registration to these vulnerable communities, helping IDPs access social benefits including shelter and rebuild their lives.
Fayda ID enables IDPs to access financial services, open bank accounts, receive loans, and participate in economic activities, and significantly reduces the risk of losing identification documents again. This system is a game-changer for IDPs, providing them with stability and the tools to regain their dignity.
The Digital ID Future
By providing millions of Ethiopians, including women, refugees, and IDPs, with a digital identity, the Fayda ID system is unlocking access to vital services and economic opportunities. The transformative power of digital ID is already sparking interest from other African nations, eager to integrate marginalized populations like refugees into their own national ID systems.
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