The Transformative Power of Ethiopia’s Digital ID: Unlocking a better future for all

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. Over 12 million people have been registered as of February 2025, with numbers expected to grow exponentially in 2025.

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. Fayda is designed to increase access to services, streamline implementation of government programs (such as safety nets payments), boost trust in online transactions, and to boost Ethiopia’s digital economy.

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. It’s a system that was designed to promote shared prosperity and pave the way for inclusive growth of Ethiopia which has a very diverse population.

Inclusive Features of Fayda ID system

What makes Fayda inclusive?

Imagine a woman...
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. To close this gap, the Fayda ID project is intentionally prioritizing women in its registration process. 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).

Summary of paper-based national ID system (Kebele ID), prior to the Fayda ID

Picture a refugee...
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. Thousands of refugees and host community members have been registered in the Fayda ID system, unlocking access to healthcare, education, telecommunications, and economic opportunities. It also intended to simplifying freedom of movement for them within Ethiopia.

Through a newly signed agreement between the NIDP, the Refugees and Returnees Service (RRS), and UNHCR, data exchange and technical interoperability are now possible, allowing refugees to benefit from an integrated system that connects them to services across Ethiopia.

Technical interoperability and data flow amongst NIDP, RRS, and UNHCR

Imagine a homeless, Internally Displaced Person...
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. The World Bank and its partners are committed to sharing lessons to help other countries create inclusive ID systems that foster social and economic participation for all.

As Ethiopia leads the way, the future is becoming brighter, more inclusive, and more accessible for all of its people, unlocking opportunities for a better tomorrow.