Kacha Digital Financial Service has signed a five-year strategic partnership with Mastercard to issue payment cards and potentially provide card-issuance services to banks, microfinance institutions and other eligible financial service providers in Ethiopia, according to statements by the company.

The agreement marks an expansion beyond Kacha’s existing digital financial services into card-based payments, subject to regulatory requirements and the terms of individual card programmes. It could also allow partner institutions to access Mastercard-linked card services through Kacha rather than establish their own issuance arrangements.

“This strategic partnership with a globally renowned organisation such as Mastercard represents a major milestone in our journey,” said Abreham Tilahun, Kacha’s chief executive officer.

Kacha describes itself as Ethiopia’s first privately owned fintech licensed by the National Bank of Ethiopia as a payment instrument issuer. The partnership could strengthen its position as a payments infrastructure provider as financial institutions broaden their digital offerings.

The companies plan to develop card issuance for Kacha customers and eligible partner institutions over the five-year term. However, the announcement does not specify when cards will launch, which card types will be available, whether they will support international transactions or the commercial terms for institutional partners.