EXPLAINER: Why Ethiopia is emerging as key market for Safaricom

On Friday, May 9, 2025, Kenyan telecommunications giant Safaricom PLC announced significant growth in its customer base in Ethiopia.

The company reported that it had registered 8.8 million subscribers by March 2025, less than three years since entering the Ethiopian market in October 2022.

This marked a 103.2% year-on-year growth compared to the same period last year.

Why Is Ethiopia Emerging as a Key Market for Safaricom?

Ethiopia, with a population of approximately 120 million, offers immense opportunities for Safaricom's expansion.

The country’s demographics are particularly attractive—40% of the population is under 15 years old, and an additional 30% is between 15 and 20.

“As we adopt a regional approach, we are well-positioned to scale and transform Ethiopia’s digital future,” said Safaricom CEO Peter Ndegwa during an investors’ briefing on May 9, 2025.

“As we stay committed to this investment for our shareholders, investors, and business, I’m pleased with the remarkable progress we’ve made in Ethiopia.”

Safaricom’s 4G network now covers 50 per cent of Ethiopia’s population, with more than 3,100 active base stations.

The company says it is focused on sustainable growth, leveraging the country's young population and low connectivity and fintech penetration.

“With a growth rate of about 10%, we are encouraged by the very strong commercial momentum in Ethiopia,” Ndegwa noted.

The telco aims to double its network sites to over 6,000 by 2030.

M-PESA, Safaricom’s flagship mobile money service, has begun offering payments and is set to expand into credit, savings, and other financial services as mobile money adoption grows in the market.

“We are pleased that our customers can now make payments via M-PESA for essential commodities such as fuel,” said Ndegwa.

During the review period, M-PESA transaction value in Ethiopia hit Sh20.6 billion, with 164.6 million transaction volumes recorded.

“We had great results during a year marked by significant currency reforms,” Ndegwa said.

As of March 2025, Safaricom had invested in 3,141 network sites and created 898 direct jobs, 95% of which are held by Ethiopian nationals.

Expatriates account for only 5% of the workforce.

Roughly 20 per cent of the group’s revenue now comes from the Ethiopian market.

The company projects continued strong performance, driven by ongoing currency reforms and easing inflation.

Safaricom became the first private telecom operator in Ethiopia, breaking the state-owned monopoly of Ethio Telecom after being granted a license in 2021 as part of the Global Partnership for Ethiopia consortium.

Ethiopia’s largely unbanked population presents a major opportunity for mobile financial services like M-PESA.

The government's strong push toward digitalisation has also created a favourable operating environment for Safaricom.

With deep experience in mobile networks and financial services in Kenya, Safaricom is leveraging its technical expertise and market knowledge in its Ethiopia venture.

Ethiopia—Africa’s oldest independent country and one of its most populous—is rich in history and has experienced an average GDP growth of 7 per cent over the past seven years.

The country offers enormous potential in telecommunications and digital financial services.

Safaricom is supporting Ethiopia’s transformation journey by providing high-quality mobile networks, faster internet, high-speed fibre connectivity, and transformative mobile money services.

The company says it is committed to bringing economic and social impact through technology and innovation.

Since receiving its license, Safaricom has been building a top-tier mobile network that is helping Ethiopians access a wide range of world-class digital services.