Safaricom Telecommunications Ethiopia

What Safaricom Telecommunications Ethiopia does

Safaricom Telecommunications Ethiopia PLC is Ethiopia's first private mobile telecommunications operator, established as part of a consortium led by Safaricom Kenya and Vodacom Group following Ethiopia's 2021 telecom liberalization. The company launched commercial 4G services in October 2022 and supplemented its core connectivity offering with the M-PESA mobile money platform in August 2023, after paying a $150 million mobile money license fee on top of an $850 million telecom license. Its technology stack centers on a 4G LTE network spanning 3,100+ cell sites covering 57.1% of Ethiopia's population, with M-PESA integrated into EthioSwitch for national payments interoperability and extended into government-facing digital services (Amhara regional tax collection and the National Fayda Digital ID program).

The company operates a hybrid GTM model: product-led consumer acquisition via the M-PESA app on Google Play and Apple App Store plus direct website sales, combined with enterprise field sales for business and government clients. Revenue is primarily usage-based from mobile voice and data services, with M-PESA contributing only $77,000 in FY26 despite 258.5% YoY customer growth — a gap the company is addressing by pivoting to savings and credit products. Service revenue reached KES 9.68 billion in Q3 FY26 (54.2% YoY growth), supported by a 44% average tariff increase on mobile data in early 2026 driven by birr depreciation. The company is targeting break-even by FY2027, with Vadacom and Safaricom raising their combined stake to 60.19% via a KES 21.3 billion cash call in July 2026, backed by IFC ($157.4M equity + $100M loan) and Standard Bank ($138M debt) financings. Customer concentration is distributed across mass-market consumers (12.2M active), with selective enterprise and government contracts in tax collection and digital ID.

Name

Safaricom Telecommunications Ethiopia

Legal name

Safaricom Telecommunications Ethiopia

Website

https://safaricom.et

Company type

Private

Founded year

2022

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Safaricom Telecommunications Ethiopia is Ethiopia's first private telecom operator, providing 4G mobile services and the M-PESA mobile money platform to 12.2 million active consumers, backed by Vodacom Group and serving government and enterprise clients across the country.

Ownership category

akta.pro rank

Product category

Mobile Telecommunications Services

NAICS

Wireless Telecommunications Carriers (except Satellite) (517112), Wired and Wireless Telecommunications (except Satellite) (5171)

SIC

Telephone Communications (No Radiotelephone) (4813)

akta.pro primary industry

Carrier Billing & Telco Mobile Money (FSAMAEAD)

akta.pro secondary industry

Digital Development & ICT4D / GovTech Technical Assistance (BPADAEAL)

Keywords

• Mobile telecommunications services
• Mobile money platform
• 4G mobile network
• Digital financial inclusion
• Enterprise telecom solutions

Headquarters

HQ city

Addis Ababa

HQ country

Ethiopia

HQ region

Africa

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Infrastructure, Operations, Supply Chain, Others, Personnel, Marketing or Sales, Technology or R&D

Revenue model

1. Mobile Services Revenue: Core telecom revenue from voice and mobile data services. Safaricom Ethiopia implemented 44% average tariff increase in mobile data charges due to birr depreciation and foreign currency costs. Service revenue grew 54.2% year-on-year to KES 9.68 billion in Q3 FY26.
2. M-PESA Mobile Money: Mobile money transaction fees and service charges from M-PESA platform. Despite 258.5% customer growth, M-PESA generated only $77,000 in revenue in FY26, contributing 0.071% of service revenue. Company pivoting to savings and credit products to target profitability.
3. Universal Access Fund Contribution: Regulatory contribution of 1.5% of revenue to Universal Access Fund for expanding communication access in underserved areas.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels4 records

Core offering

Safaricom Telecommunications Ethiopia provides 4G LTE mobile voice and data services to consumers and enterprises across Ethiopia, complemented by the M-PESA mobile money platform that enables person-to-person transfers, merchant payments, bill payments, savings/credit products, and government tax collection. The company also offers enterprise connectivity and digital ID services through partnerships with government institutions.

Product overview

Safaricom Telecommunications Ethiopia operates as a purpose-led technology and communications company offering a unified telecommunications platform combining 4G mobile network services with mobile money functionality. The core offering consists of Safaricom Ethiopia's 4G network infrastructure providing voice and data services, complemented by the M-PESA mobile money ecosystem which includes a companion mobile application. Additional value-added services include data packages, CRBT (caller ringback tones), and enterprise solutions. The company launched commercial operations in October 2022, ending Ethiopia's state telecom monopoly, and subsequently introduced M-PESA mobile money services in August 2023.

Differentiator

Problem solved

Functional benefit

Brands

• M-PESA: Mobile money and financial services platform offering mobile payments, transfers, and savings/credit products in Ethiopia

Products and services

• Safaricom Ethiopia 4G Network 4G LTE telecommunications network providing mobile voice and data services to consumers and businesses across Ethiopia, covering approximately 57.1% of the country's population with over 3,100 network sites.
• M-PESA Ethiopia Mobile money platform enabling person-to-person transfers, merchant payments, airtime purchase, savings and credit products, and bill payments; integrated with EthioSwitch for national payments interoperability.
• M-PESA Mobile Application Standalone iOS and Android smartphone application enabling consumers to manage M-PESA mobile money services including transfers, bill payments, and account management.
• Mobile Data Packages Data bundles and packages offered to subscribers for mobile internet access on the 4G network, available in various sizes and validity periods on a pay-as-you-go basis.
• CRBT (Caller Ringback Tone) Caller Ringback Tone service allowing subscribers to customize the tone heard by callers before the call is answered.

Quantifiable outcome

• 12.2 million active customers with 71.7% year-on-year growth
• +4 more outcomes

Named customers3 records

Segments3 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature4 records

Partnerships

Four partnerships are on record, tiered core.

• National ID Programme of EthiopiacoreStrategic or Co-development Partner · 7 July 2026Safaricom Ethiopia signed joint venture agreement to support the National Fayda Digital ID Registration Project (Lots 3 and 4). Partners will manage citizen registration across Afar, Amhara, Tigray, Sidama, South West Ethiopia, Central Ethiopia, and South Ethiopia regions.
• Africom TechnologiescoreStrategic or Co-development Partner · 7 July 2026Joint venture partner with Safaricom Ethiopia and National ID Programme for National Fayda Digital ID Registration Project, managing citizen registration across multiple Ethiopian regions to expand access to digital identity.
• Amhara Regional State Revenue BureaucoreStrategic or Co-development Partner · 21 March 2026M-PESA Ethiopia signed MOU enabling over 450,000 taxpayers in Amhara region to pay taxes through mobile money platform. Positions Amhara bureau as Ethiopia's first regional tax authority to integrate mobile money into its payment system.
• VodafonecoreStrategic or Co-development Partner · 19 February 2026Parent company Vodafone supports operations across 180 countries with over 1 million km of terrestrial fibre and 70+ submarine cables. Vodafone engineers contributed to Ethiopia's network rollout as the first private telecom operator.

Scale indicators11 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• MTN Group: Africa's largest mobile operator operating across multiple Sub-Saharan markets with the MoMo mobile money platform. Directly comparable to Safaricom Ethiopia as a multi-country wireless carrier with integrated mobile financial services targeting similar low-penetration, high-growth markets.
• Airtel Africa: Pan-African mobile operator with Airtel Money mobile financial services across 14 African markets. Closely comparable business model combining greenfield-style growth in emerging African markets with mobile money monetization, directly competing for the same digital financial inclusion opportunity.
• Ethio Telecom: State-owned Ethiopian incumbent telecom operator and Telebirr mobile money platform owner. The direct in-country competitor with 52.56 million Telebirr users, sharing the regulated duopoly structure and contributing the same 1.5% Universal Access Fund fee.
• Safaricom Kenya: Sister company and core shareholder through Vodafamily Ethiopia Holding; originator of the M-PESA mobile money platform. Provides the operational blueprint, brand, and technology stack that Safaricom Ethiopia is replicating in a structurally similar East African market.
• Econet Wireless: Pan-African mobile operator with operations in Zimbabwe, Lesotho, Burundi, and DRC, including mobile money services. Comparable as a privately-led, emerging-market wireless carrier with integrated financial services and similar network-coverage growth challenges.

Broad incumbents

• Vodacom Group: South Africa-based parent company operating telecom and mobile money across multiple African markets. Comparable as the consolidating operator leveraging the M-PESA platform across geographies, with Safaricom Ethiopia as a key growth market within its portfolio.
• Orange S.A. Global telecommunications incumbent with Orange Money mobile financial services across multiple African and Middle Eastern markets. Comparable as a broad incumbent deploying telecom-plus-mobile-money offerings in emerging markets with similar digital financial inclusion theses.

Emerging players

• Wave Mobile Money: Mobile money challenger operating in Senegal, Côte d'Ivoire, and Uganda with a low-fee, mobile-first model. Comparable as an emerging mobile financial services player targeting the same digital financial inclusion opportunity in African markets with low banking penetration.

Regional players

• Africell: African mobile operator with operations in Uganda, Sierra Leone, DRC, and Angola (and previously Gambia). Comparable as a regional challenger mobile operator deploying 4G networks and mobile money in emerging African markets competing against larger incumbents.
• Maroc Telecom: North African incumbent mobile operator with subsidiaries across West and Central Africa. Comparable as a regional telco with integrated mobile money and broadband services operating in lower-penetration emerging markets with similar regulatory and infrastructure challenges.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/SafaricomET
• LinkedInlinkedin.com/company/safaricom-ethiopia
• Facebookfacebook.com/SafaricomET

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Subsidiaries1 record

Funding overview

Funding rounds4 records

Investors3 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Safaricom Telecommunications Ethiopia