Global Bank Ethiopia, Lucy Insurance S.C., and Kacha Digital Financial Services have introduced “Agar,” Ethiopia’s first digital insurance and loan service. The platform is designed for insurance customers, meter taxi drivers, and salaried employees, offering digital loan and savings solutions.
Ethiopia’s insurance sector has traditionally relied on paperwork and rigid documentation, limiting accessibility and market penetration. Adefris Wesen, CEO of Lucy Insurance, noted that the sector’s traditional model had hindered its growth and contribution to the economy. “Agar” aims to address these challenges by digitalizing service delivery and expanding financial accessibility.
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The initiative is in line with Ethiopia’s Digital 2025 strategy, which promotes digital financial inclusion. Hailemariam, Advisor to the Deputy Governor of the National Bank of Ethiopia (NBE), highlighted that the partnership supports this initiative while also ensuring cybersecurity and consumer protection.
“Agar Digital Insurance” is the first insure-tech product in Ethiopia, allowing users to purchase insurance via mobile phones without visiting branches. The platform, available through the Kacha mobile app, also provides digital loans to help customers manage premium payments. Users can choose repayment periods ranging from one to nine months.
Additionally, two other services were introduced:
- Agar for Drivers: A service that provides meter taxi operators with quick access to digital loans for urgent vehicle repairs or expenses.
- Agar for Salaried Employees: A salary advance loan service that allows employees to access a portion of their wages before payday without requiring collateral.
The digital platform is expected to increase access to financial and insurance services, reflecting ongoing changes in Ethiopia’s financial sector.
Source: Ethiopian Business Review
