Fayda (Amharic: ፋይዳ , ; sometimes informally called Fayda ID or Fayda Number) is a 12 digit unique identification number issued by NIDP (National ID Program) of Ethiopia to residents who fulfill the required procedures put in place by NIDP digital identification number. It serves as a unique proof of identity for an individual based on the “one person, one identity” principle due to its biometric identifier technology. it is intended to serve as a national and personal identifier to gain access to different public and private sector services seeking secure eKYC (electronic Know Your Customer).
Fayda ID has its basis on the Ethiopian 10 year development plan, Home Grown Economic Reform, Digital Strategy 2025 a comprehensive digital transformation strategy in Ethiopia.It aims to register all eligible Ethiopians by implementing a nationwide biometric digital ID system.
History
Previous identity card programs
Prior to the operationalization of Fayda, there was no foundational ID in Ethiopia. The de facto foundational ID is an ID issued by the lowest administrative unit called Kebele. Over 16,400 Kebeles issue this ID after verifying the residence of the person in that Kebele.
However, there is no centralized system to verify the authenticity of Kebele ID and hence, Kebele ID are open for forgery and alterations. A finding from a study conducted by the Ministry of Justice and National Bank of Ethiopia disclosed that within 5 years prior to 2019, banks incurred 1.8 Billion Birr loss as a result of fraud including identity fraud.
Legal Framework
Before the program was constituted under the Office of the Prime Minister, it was housed at the Ministry of Peace. After its re-establishment under the Office of the Prime Minister, the program initiated the drafting and adoption of the Ethiopian Digital Identification Proclamation 1284/2023. This proclamation has personal data protection elements embedded in to it. This proclamation also stresses on the digital identifier aspect of "Fayda" and its inclusive aspects where a registrant can be onboarded even if they lack a proof-of-ID nor proof-of-address through an 'introducer' scheme. The proclamation was approved by the House of Peoples Representatives on the 30th of March, 2023.