Banking & Finance
Safaricom Unveils East Africa Expansion Plan
Safaricom CEO Peter Ndegwa unveils bold East Africa expansion on May 21, 2025, as M-Pesa drives cross-border growth and Ethiopia users hit 5.2 million.
Safaricom launches a $400M East African strategy to grow M-Pesa, expand digital infrastructure, and drive regional fintech integration by 2027.
Safaricom’s $400M Bet on East Africa’s Digital Future
Nairobi, May 21, 2025 — In a bold move to scale its influence beyond Kenya, Safaricom PLC has unveiled a new East African expansion strategy focused on digital infrastructure, regional M-Pesa growth, and cross-border partnerships.
“Our next chapter is about enabling seamless regional integration through digital infrastructure and inclusive platforms,”
— Peter Ndegwa, CEO, Safaricom PLC
This announcement follows Safaricom’s steady growth in Ethiopia since entering the market in October 2022 through Safaricom Ethiopia PLC, which now serves 5.2 million mobile subscribers and 1.4 million M-Pesa users as of April 2025.
A Pan-East Africa Strategy Unveiled
On May 21, the company launched a multi-country expansion initiative that will include Uganda, Rwanda, Tanzania, and South Sudan. The plan revolves around:
- Expanding M-Pesa’s cross-border payment infrastructure
- Building shared fiber and data center capacity
- Forging roaming and infrastructure-sharing pacts with local telecoms
Safaricom is already in advanced negotiations with:
These talks aim to co-invest in fiber infrastructure and deploy interoperable mobile payment systems across networks.
“We’re entering a phase where collaboration, not competition, is what unlocks scale.”
— Sitoyo Lopokoiyit, MD, M-Pesa Africa
By the Numbers: Safaricom’s Expansion in Context
According to Safaricom’s full-year earnings report (May 2025):
- Total revenue: KSh 340.2 billion (~$2.58 billion)
- M-Pesa revenue: ~40% of total earnings
- Safaricom Ethiopia revenue: KSh 10.2 billion (~$77 million)
- Break-even projection: By 2027
The company’s regional push is underpinned by a $400 million capital outlay over three years. This funding is being drawn from:
- Internal resources
- Syndicated financing from institutions like:
Challenges: Regulation, Competition & Risk
Despite its vision, Safaricom faces multiple headwinds:
- Stiff Competition:
Rivals like MTN Group, Airtel Africa, and Orange are aggressively positioning themselves across East Africa. - Regulatory Barriers:
In Ethiopia, for instance, M-Pesa only secured a full license in August 2023, almost a year after Safaricom began operations. - Geopolitical and Fiscal Challenges:
- Tax inconsistencies across jurisdictions
- Political instability, especially in South Sudan and parts of Ethiopia
Aligning With Kenya’s Vision 2030 & AfCFTA
Safaricom’s regional expansion is in lockstep with Kenya’s Vision 2030 and the goals of the African Continental Free Trade Area (AfCFTA) — both of which prioritize regional integration, digital infrastructure, and inclusive growth.
“We’re building the digital rails that will power trade, innovation, and financial inclusion across borders,”
— Peter Ndegwa, CEO, Safaricom PLC
What This Means for East Africa
- M-Pesa will expand its footprint into previously underbanked regions
- Regional fiber-optic networks will reduce internet costs and boost speeds
- Cross-border mobile payments will facilitate small business growth
- Safaricom is likely to become a digital infrastructure backbone across East Africa
On May 21, 2025, Safaricom announced its most ambitious expansion yet, a move set to reshape East Africa’s digital and financial future. Backed by $400 million and strategic alliances, Safaricom aims not just to grow—it seeks to become the core enabler of East Africa’s integrated digital economy.
- Safaricom East Africa expansion
- M-Pesa cross-border payments
- Ethiopia telecom market
- East Africa fintech strategy
- Mobile money in Uganda Rwanda Tanzania
- Kenya Vision 2030 digital economy
- Safaricom Ethiopia subscribers
- Regional digital infrastructure Kenya