Safaricom Ethiopia Surpasses 10 Million Customers, Fueling Regional Digital Expansion

Safaricom Ethiopia has achieved a major milestone by surpassing 10 million active mobile subscribers, marking a significant leap in its expansion into one of Africa’s largest and most promising telecommunications markets. Launched in October 2022, the company has more than doubled its customer base in under two years, reflecting strong demand for its services in a country where digital connectivity is rapidly gaining traction.

The mobile network operator now boasts over 10 million active users, with approximately 7.1 million of them actively using data services. On average, Safaricom Ethiopia is onboarding about 31,000 new customers daily, driven by aggressive network rollout, attractive service offerings, and growing trust in the Safaricom brand.

This rapid growth is backed by heavy infrastructure investment. The company has deployed over 3,100 4G sites, covering more than 50 percent of Ethiopia’s population across more than 150 towns. To date, Safaricom has invested more than USD 2.2 billion in its Ethiopian operations, positioning itself as a key player in the country’s digital transformation.

A key contributor to Safaricom Ethiopia’s success has been the introduction of its mobile money platform, M-Pesa, in August 2023. By the end of 2024, M-Pesa had already attracted 10.8 million registered users in Ethiopia.

Despite a 74 percent drop in mobile money revenue, transaction volumes surged by over 1,000 percent, indicating growing adoption. M-Pesa now handles an average of USD 6 million in transactions daily, including airtime purchases and cross-border remittances, especially between Kenya and Ethiopia.

Financially, Safaricom Ethiopia’s revenue grew by 40 percent to Ksh 6.74 billion in the nine months leading to December 2024. Although the company remains in a loss-making position, group CEO Peter Ndegwa recently indicated that losses are narrowing significantly.

From a Ksh 61 billion loss in the previous fiscal year, the expected deficit for the year ending March 2025 is estimated to reduce to between Ksh 23 billion and Ksh 26 billion. The company expects to break even by 2026 or 2027, driven by continued growth in mobile and M-Pesa usage.

Beyond financial metrics, Safaricom Ethiopia has created substantial socioeconomic impact. The company employs over 900 people directly—97 percent of whom are Ethiopian—and has generated more than 20,000 indirect jobs. It has also invested in local communities through digital education programs, youth tech empowerment, and humanitarian assistance initiatives.

Ethiopia, with its population of over 126 million and relatively low mobile penetration, presents immense potential for digital growth. Safaricom’s entry into the market followed the partial liberalization of Ethiopia’s telecom sector, breaking the monopoly long held by Ethio Telecom. Safaricom’s early success is largely attributed to competitive pricing, superior network quality, and innovation in financial technology.

Looking ahead, the company plans to scale further by doubling its network sites to over 6,000 by 2026, aiming to reach 90 percent of the population. Plans are also underway to introduce 5G connectivity in key cities, expand M-Pesa offerings to include savings, loans, and bill payments, and continue building strategic partnerships to support innovation and financial inclusion.