Ethiopian authorities have charged two fintech entrepreneurs with 19 counts of fraud after allegedly defrauding more than 1,200 victims out of 1.7 billion birr (approximately $30 million) in a vehicle purchase scheme that promised cars within 90 days but delivered on only a fraction of orders.
Daniel Yohannes and Girmay Gebremichael, founders of Fintech Investment plc, now face charges including fraud and cross-border financial crimes. Daniel Yohannes remains in custody while Girmay Gebremichael is at large under active monitoring, according to the Ethiopian Federal Police.
The case, which comes to a head with an investigation deadline of March 30, 2026, reveals a sophisticated operation that exploited Ethiopia's nascent digital finance sector and citizens' trust in celebrity endorsements.
According to police documents obtained by StockMarket Ethiopia, the founders promised customers vehicle ownership within 90 days for a 50 percent down payment of 950,000 birr, with the remaining balance financed through banks at zero interest over five years. After additional fees, victims paid approximately 1.365 million birr each.
The scheme unraveled when investigators discovered that while Fintech Investment plc imported 148 vehicles through Djibouti, only 100 were distributed to customers. The remaining 48 vehicles were secretly sold, with proceeds allegedly pocketed by the founders. Police also found the company made false claims about partnerships with Chinese automaker BYD Company and established a shell company called "Alfatizo" in Djibouti to acquire vehicles with minimal payment.
Seven public figures, including media personalities and influencers, were detained for promoting the scheme through endorsements. The group – Solomon Bogale, Serawit Fikre, Daniel Tegen, Abraham Gizaw, Yegerem Dejene, Mansur Jamal, and Khalid Nasser – reportedly received BYD Song Plus models worth approximately 8 million birr in exchange for their promotional services.
The case highlights the regulatory challenges facing African nations as fintech sectors expand rapidly without corresponding oversight infrastructure. While Kenya's M-Pesa succeeded through clear regulation and consumer protection frameworks established by the Central Bank of Kenya, Ethiopia's approach has been marked by reactive restrictions rather than proactive governance.
"Our people trust everything put online and especially if endorsed by celebrities," one Reddit user commented, pointing to a vulnerability that fraudsters across the continent have exploited as digital financial services expand faster than financial literacy programs.
The contrast with Kenya's regulatory model is instructive. Kenya built M-Pesa's success on robust consumer protection laws, transparent dispute resolution mechanisms, and continuous regulatory engagement with fintech innovators. The Central Bank of Kenya established clear licensing requirements and operational guidelines that allowed innovation while protecting consumers.
Ethiopia, by contrast, has oscillated between restrictive policies – such as the recent P2P payment ban – and apparent regulatory gaps that allowed Fintech Investment plc to operate despite red flags that should have triggered scrutiny.
Financial technology experts across the continent have called for Ethiopia to develop comprehensive fintech regulation that balances innovation with consumer protection. The National Bank of Ethiopia needs clear licensing requirements, mandatory customer verification protocols, and transparent complaint mechanisms before approving fintech operations.
For now, the 1,200 victims of Fintech Investment plc await potential restitution as the investigation concludes. Whether their case prompts meaningful regulatory reform remains to be seen. But the incident serves as a cautionary tale for African nations rushing to embrace fintech innovation without first building the governance structures that make it sustainable.
54 countries, 2,000 languages, 1.4 billion people. In Ethiopia, a fintech fraud case exposes the urgent need for regulation that protects innovation and consumers alike.
