Safaricom Ethiopia Reports Strong Growth Despite Market Challenges

Safaricom Ethiopia reported a surge in customer growth and service revenue in the first half of the financial year, even as currency reforms and regulatory hurdles weigh on performance.

The operator grew its 90-day active customer base to 11.1 million, an 83.7% increase year-on-year, the company announced on Thursday. Its mobile money service, M-PESA, expanded to 3.4 million active customers, up 175%, now reaching nearly one-third of Safaricom Ethiopia’s mobile base, driven largely by app adoption and merchant onboarding.

Service revenue rose 179% to 6.5 billion Birr, while net losses narrowed by 23% to 26.2 billion Birr. Voice services now contribute 22% of revenue, up from 12% a year earlier, reducing reliance on mobile data as the primary income source.

Network rollout has continued despite economic headwinds, with 3,162 sites activated by September equivalent to 83% of its 2026 financial year coverage target of 3,800 sites.

Safaricom CEO Peter Ndegwa said foreign currency depreciation and regulatory constraints continue to challenge the business. “Despite these headwinds, we remain committed to driving growth and advocating for a fair and competitive market that benefits Ethiopian consumers,” he said.

Wim Vanhelleputte, CEO of Safaricom Telecommunications Ethiopia, said operational improvements and customer acquisition will remain priorities as the operator works to scale M-PESA and expand service offerings.

Safaricom Ethiopia’s entry follows government-led reforms intended to open the telecom sector to competition after decades of monopoly. Its shareholders including Safaricom PLC, Vodacom, Vodafone, Sumitomo Corporation, British International Investment, and the International Finance Corporation have invested more than USD 2.5 billion in Ethiopia to date.

The company also highlighted its community engagement initiatives, noting the establishment of the Safaricom Foundation earlier this year to support education, agriculture, health, and economic empowerment programs across the country.

With inflation easing and GDP growth projected to hold strong, Safaricom Ethiopia says it is betting on the long-term potential of Africa’s second-largest population as it works with regulators to address structural gaps in the telecommunications sector.