Ethiopia: Safaricom approaches balance, but its mobile payment remains marginal

In the three months ending in June, the operator continued to ramp up its activities in Ethiopia. This growth is among the fastest ever recorded by a telecom operator on the continent, according to information provided by the group.

Safaricom’s entry into this market marked a significant milestone in opening the Ethiopian telecommunications sector to competition. Four years later, the subsidiary has managed to accelerate its development despite the complexities of a vast market still undergoing digital transformation.

This performance, however, does not reflect in the overall activities of the group. Mobile payments, which have historically been one of Safaricom’s main drivers in its other markets, remain marginal in Ethiopia.

Mobile Payment Still Lagging

The group’s mobile payment service is struggling to replicate the success seen in other African countries. The use of digital financial services remains limited, even as the operator has made it a key focus of its growth strategy.

This situation reduces the contribution of mobile payments to the results of the Ethiopian subsidiary. It also distinguishes the local market from other countries where Safaricom has relied on such services to boost its revenue and retain its subscribers.

Nevertheless, the operator is banking on the continued expansion of its network and the gradual increase of its customer base. The growth of telecom activities is expected to compensate, at least initially, for the low penetration of mobile payments.

Safaricom is maintaining its financial timeline despite this gap from its historical model. The Ethiopian subsidiary still aims for operational balance by March 2027, following a phase of investments devoted to its deployment in the country.