Safaricom Eyes Ethiopia’s Digital Market with Mobile Expansion Strategy and Ambitious Growth Targets
Safaricom is betting that mobile money could change the way millions of Ethiopians manage everyday life
Ethiopia’s streets still move largely on cash. Vendors count bills at market stalls, commuters exchange coins on crowded buses, and for millions, banks remain distant institutions. In this landscape, Safaricom sees an opening.
The Kenyan telecom entered Ethiopia in 2022 after securing the country’s first private license, following decades of state monopoly. Today, it serves roughly 10 million users, but its ambitions stretch far beyond that. The company projects its subscriber base could reach 70 million by 2030, betting on the country’s readiness to embrace mobile payments.
Mobile money is central to this vision. Safaricom’s M-Pesa platform has transformed financial transactions in Kenya, and the company hopes a similar shift can take hold in Ethiopia. “Cash still dominates daily life,” says James Maitai, Chief Technology Officer. “Mobile financial services have the potential to reach millions who previously had limited access.”
The path has not been smooth. Early operations were hampered by currency shortages and logistical challenges in a country with political and security concerns. Building the infrastructure to reach both cities and rural communities is a major undertaking. Safaricom plans to expand its base stations from under 4,000 to over 10,000 in the next decade, aiming to make mobile connectivity reliable across Ethiopia.
Competition is significant. Ethio Telecom still maintains 83 million subscribers and a long-standing presence in the market. Winning over users will require more than technology. Trust, service reliability, and an understanding of local practices will shape how quickly mobile money adoption grows.
Looking at trends elsewhere in Africa offers perspective. In Nigeria, mobile money took off almost immediately once regulators allowed telecom companies to operate accounts. Regulatory openness can transform a market in a short period, but Ethiopia’s journey will depend on a mix of policy, infrastructure, and user confidence.
Across the continent, mobile penetration is climbing. McKinsey predicts it will reach 50% by 2030, up from 44% in 2023. Affordability and network coverage remain key barriers, but companies like Safaricom are investing heavily in both. For Ethiopia, the shift toward digital payments could change everyday commerce, banking, and financial inclusion. For Safaricom, success in Ethiopia would demonstrate whether its Kenyan model can thrive in a different, complex market.
Go to TECHTRENDSKE.co.ke for more tech and business news from the African continent.
Follow us on WhatsApp, Telegram, Twitter, and Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates. Send tips to editorial@techtrendsmedia.co.ke
TechTrends Media Podcasts
