The new national digital ID system, Fayda, is changing the landscape in Ethiopia by offering access to essential services for millions of people. Supported by the World Bank's Ethiopia Digital ID for Inclusion and Services Project with $350 million, the initiative aims to provide digital IDs to 90 million residents, including refugees. The project began in 2024 and has already registered over 12 million people as of February 2025.
Many Ethiopians lack identification, which hinders their participation in the formal economy. Fayda is designed to improve access to services and streamline government programs while boosting trust in online transactions. It is part of a broader effort to promote inclusive growth in Ethiopia.
Fayda focuses on inclusivity by prioritizing women during registration. According to a 2024 study, women are less likely than men to possess identification. The project partners with women's groups and trains female registration officers to address this disparity.
Ethiopia hosts over a million legally residing refugees, many with expired ID cards that limit service access. The Fayda system helps them gain access to healthcare, education, telecommunications, and economic opportunities. A new agreement among NIDP, RRS, and UNHCR enables data exchange for better integration of services.
For internally displaced persons (IDPs), Fayda offers stability by allowing access to financial services and social benefits through innovative outreach platforms like 'OpenG2P.' This approach helps displaced individuals regain dignity and participate economically.
By providing digital identities, Fayda is opening up vital services and opportunities for marginalized populations in Ethiopia. This model has attracted interest from other African nations aiming to integrate similar systems.