Safaricom Ethiopia Reaches 10 Million Active Customers in Four Years

Safaricom Ethiopia marked a historic milestone, announcing it has reached 10 million 90-day active customers just four years after receiving its operating license in May 2021. The achievement, celebrated at a press event in Addis Ababa, underscores the company’s rapid growth in Ethiopia’s newly liberalized telecom sector, fueled by a KES 330 billion (approximately USD 2.27 billion) investment in infrastructure and digital services. With a robust 4G network now covering over half the country’s population and the creation of more than 20,000 jobs, Safaricom Ethiopia is reshaping connectivity and economic opportunities in one of Africa’s largest markets. The milestone reflects not only the company’s commercial success but also its role in advancing Ethiopia’s digital transformation.

Safaricom Ethiopia’s journey began in October 2022, when it launched commercial operations in Dire Dawa, followed by a nationwide rollout in Addis Ababa and ten other cities. The company, a consortium led by Kenya’s Safaricom PLC alongside Vodafone Group, Vodacom, Sumitomo Corporation, and British International Investment, entered Ethiopia as the first private telecom operator to challenge the state-owned Ethio Telecom’s monopoly. “Achieving an active customer base of 10 million is a significant milestone for us, but it also brings great responsibility,” said Wim Vanhelleputte, CEO of Safaricom Ethiopia, during the announcement. “Behind each SIM card is an individual, a family, a business, and a future. Our mission is to support Ethiopia’s development through world-class connectivity and innovation.”

The company’s KES 330 billion investment has been pivotal in building a modern telecom infrastructure. Safaricom Ethiopia’s 4G network now spans more than 150 towns and cities, supported by 3,141 live sites, covering 55 percent of Ethiopia’s 120 million population. This rapid expansion has driven a 53 percent increase in per-user data consumption, with 7.1 million customers using mobile data services at an average of 6.5GB per month. “Our 4G network is the backbone of this growth,” said Vanhelleputte. “We’re adding 31,000 new customers daily, which shows the demand for reliable connectivity.” The company’s focus on digital services has also reduced mobile data costs by up to 70 percent since its launch, making internet access more affordable for millions.

Beyond connectivity, Safaricom Ethiopia has made significant social and economic contributions. The company employs 900 direct staff, 97 percent of whom are Ethiopian nationals, and has created over 20,000 indirect jobs through SIM-selling brand ambassadors, distribution partners, and subcontractors. “This milestone is more than a number,” Vanhelleputte emphasized. “It reflects the trust of the Ethiopian people and the dedication of thousands working toward a shared digital future.” Safaricom has also invested over 120 million ETB in community initiatives, including donations of laptops and routers to schools, support for fire-affected businesses in Ashewa, and aid for landslide and earthquake victims in Gofa Zone and Afar. A 10 million ETB contribution to the Mekedonia Humanitarian Association further highlights its commitment to social impact.

The introduction of M-Pesa, Safaricom’s mobile money platform, has been a game-changer. Launched in August 2023 after securing a license from the Central Bank of Ethiopia, M-Pesa now serves over 3 million users, with 26,200 agents and 43,100 merchants. “M-Pesa is transforming financial inclusion,” said Stanley Njoroge, former interim CEO of Safaricom Ethiopia. “It’s providing a safe platform for transactions, empowering small businesses and individuals.” With only 45 percent of Ethiopia’s adult population holding a financial account in 2020, M-Pesa’s growth is critical to closing this gap, especially in rural areas where banking services are limited.

Despite its achievements, Safaricom Ethiopia faces challenges in a market dominated by Ethio Telecom, which reported 80.5 million subscribers in the first half of 2024. “Competing with a government-owned giant is tough,” Vanhelleputte admitted. “But our collaboration through infrastructure-sharing agreements and our focus on quality services are leveling the playing field.” The Ethiopian Communications Authority’s recent 25.8 percent reduction in mobile termination rates to 0.23 ETB per minute has further supported Safaricom’s growth by lowering interconnection costs. The company also navigates economic headwinds, including 30 percent inflation and foreign exchange shortages, which have impacted profitability. Safaricom Ethiopia reported an operating loss of 47 billion ETB for the fiscal year ending March 31, 2025, though executives view this as expected during the investment phase, with profitability projected by 2027.

The company’s financial performance has been promising despite these challenges. For the year ending March 2024, Safaricom Ethiopia generated 7.02 billion KES in revenue, with mobile data contributing 3.9 billion KES. The unit accounts for nearly 10 percent of Safaricom Group’s total revenue, a significant feat for a startup operation. “Our focus is on revenue and customer growth now,” said a company spokesperson. “Profitability will come as we scale.” Safaricom’s stock surged 4.8 percent to KES 26.20 on July 1, 2025, reflecting investor confidence in its Ethiopian venture.

Public sentiment on social media platforms like X has been largely positive, with users praising Safaricom’s impact on connectivity. “Safaricom Ethiopia’s 4G is a game-changer in Addis,” one user posted. “Internet is faster and cheaper now.” However, some expressed concerns about M-Pesa’s slower adoption compared to Ethio Telecom’s Telebirr, which boasts 41 million users. “Safaricom needs to push M-Pesa harder to catch up,” another user noted. The hashtag #SafaricomEthiopia trended briefly, capturing excitement around the milestone but also calls for improved rural coverage.

Safaricom Ethiopia’s success is part of Ethiopia’s broader economic reforms, initiated in 2018 under Prime Minister Abiy Ahmed to liberalize the telecom sector. The $850 million license fee paid by Safaricom’s consortium was one of Ethiopia’s largest foreign direct investments, signaling confidence in the country’s potential. “The government’s support has been crucial,” said Michael Joseph, Chairman of Safaricom Ethiopia. “Their reforms are opening doors for competition and innovation.” The company collaborates with Ethio Telecom on infrastructure sharing and pays $3 million annually for network rentals, fostering a cooperative yet competitive market.

The company’s growth has not been without hurdles. Initial challenges included delays in equipment customs clearance and security concerns following the 2020 Tigray conflict. “The first two years were bumpy,” said a telecom analyst. “But Safaricom’s persistence has paid off.” The company has since expanded to 33 cities and plans to reach 4,000 sites by 2027, with a $1.5 billion investment earmarked for network expansion. Safaricom is also preparing to launch Fuliza, a popular overdraft service from Kenya, to further boost M-Pesa’s appeal.

Safaricom Ethiopia’s impact extends beyond telecom. Its 114 branded shops offer services in five languages, and its e-KYC system streamlines customer onboarding, with 90 percent of customers served within two minutes. The company’s two data centers, including a $100 million facility, support its 4G and 5G-ready infrastructure. “We’re not just building a network; we’re building a digital ecosystem,” said Vanhelleputte. Plans for home fiber and smart home services by 2028 align with Ethiopia’s Digital Ethiopia 2025 strategy, aiming to enhance connectivity and economic growth.

The milestone has drawn praise from industry leaders. “Safaricom Ethiopia’s growth shows the power of private investment in telecom,” said a World Bank Group official, referencing the $257.4 million investment from the International Finance Corporation and Multilateral Investment Guarantee Agency. The company’s focus on youth, with 450 graduates recruited for its Discover Graduate Management Program, positions it as a leader in talent development. “Young people are key to Ethiopia’s digital future,” said Anwar Soussa, former CEO of Safaricom Ethiopia.

Looking ahead, Safaricom Ethiopia aims to deepen its market share, currently at 5.5 percent compared to Ethio Telecom’s 94.5 percent. “We’re not here to compete on numbers alone,” said Vanhelleputte. “Our goal is quality and inclusion.” The company’s plans include expanding M-Pesa to rural areas and introducing new digital services like e-commerce and health tech. As Ethiopia’s telecom market evolves, with a third license still under consideration, Safaricom’s early success signals a transformative era for connectivity and economic opportunity.

The 10 million customer milestone is a testament to Safaricom Ethiopia’s strategic vision and resilience. “We’re just getting started,” said Vanhelleputte. “Our investment in Ethiopia is about creating a connected, inclusive future.” As the company continues to bridge digital divides and empower communities, its role in Ethiopia’s economic and social landscape is set to grow, paving the way for a more connected nation.