Banking & Finance
Safaricom Ethiopia Surpasses 10M Users in 2025
Safaricom’s expansion into Ethiopia positions it as a regional tech leader, challenging Ethiotelecom and advancing East Africa’s digital integration with 5G on the horizon.
Safaricom Ethiopia tops 10M users, $1.2B in M-Pesa transactions as it transforms from a bold bet to a pan-African telecom growth engine in 2025.
Safaricom Ethiopia Crosses 10M Subscribers, $1.2B in M-Pesa Volumes
In 2021, when Safaricom Plc led a consortium to win a telecommunications license in Ethiopia, its $850 million bet marked the country’s largest-ever foreign direct investment. Fast forward to May 2025, that gamble is paying off in spades.
Today, Safaricom Ethiopia boasts 10+ million subscribers, having doubled its user base in just under two years. Even more significantly, it has processed nearly $1.2 billion in M-Pesa transactions since officially launching mobile money services in August 2023.
“We’re no longer talking about entry; we’re talking about leadership.”
— Peter Ndegwa, Safaricom Group CEO
Cracking Ethiopia’s Code
With 126+ million people, Ethiopia is Africa’s second most populous country—yet had some of the lowest mobile and banking penetration rates until recently. The sector’s liberalization under Prime Minister Abiy Ahmed’s reforms opened doors for foreign investment.
Safaricom entered Ethiopia with backing from:
Since its 2022 launch, Safaricom Ethiopia has:
- Built 2,200+ base stations
- Covered 30+ cities and 120 towns
- Hired 1,700 local employees, with thousands more supported indirectly
M-Pesa: The Digital Catalyst
M-Pesa’s debut came after a key policy shift in mid-2023, when the National Bank of Ethiopia allowed foreign-owned firms to offer mobile money services. The impact was immediate.
By Q1 2025:
- 4.5 million M-Pesa wallets activated
- $6M+ daily transaction volume
- Strong adoption in merchant payments, utilities, and peer-to-peer transfers
“The velocity of adoption is faster than what we saw in Kenya back in 2007.”
— Sitoyo Lopokoiyit, MD, M-Pesa Africa
Partnerships with local banks are now unlocking savings, loans, and micro-insurance—key drivers for financial inclusion, which stood at just 35% before M-Pesa’s entry.
Turning Red Ink to Pink
Yes, there were early losses—KSh15B ($116M) in FY2022 alone. But the turnaround is here.
- FY2024/25 revenue: KSh27.1B ($210M)
- 60% YoY growth
- 18% of revenue from mobile money
- Group net profit: KSh79.4B ($615M), up 12.4%, boosted by Ethiopia
Analysts at EFG Hermes say cash-flow positivity could arrive by early 2026.
Strategic Implications for the Region
As Ethiopia stabilizes politically and embraces digital reforms, Safaricom is positioned as both a tech enabler and diplomatic asset. Its expansion supports:
- Kenya’s regional trade strategy via the East African Community (EAC)
- Africa’s digital harmonization under AfCFTA
Safaricom’s Ethiopian rival, Ethio Telecom, still holds 70M+ users, but Safaricom’s strengths in:
- 4G coverage
- Customer experience
- Pricing and innovation
…are winning over urban and youth segments.
What’s Next for Safaricom Ethiopia?
“In five years, we want to be Ethiopia’s most trusted tech partner—not just a telco.”
— Peter Ndegwa
- Safaricom Ethiopia Wins 2025 Vodacom Awards
- M-Pesa Expansion to East Africa: Strategy & Numbers
- Safaricom Posts KSh104B EBIT in 2025 Earnings Beat
- Cross Switch Enters Kenya via Pesawise Partnership
Safaricom Ethiopia 2025
M-Pesa Ethiopia launch
Safaricom subscriber growth
Foreign direct investment Ethiopia
Mobile money adoption in Ethiopia
East Africa telecom market
Safaricom expansion
Ethiopia telecom reforms
Kenya-Ethiopia digital trade
Peter Ndegwa strategy