FINTECH NEWS

Safaricom Triumphs in Ethiopia Despite Licensing Challenges

Steps to Activate M-PESA Services in Ethiopia

Safaricom embarked on a transformative journey with its entry into the Ethiopian market on October 6, 2022, a strategic move made possible by the liberalization policies ending Ethio Telecom’s monopoly. 

The Safaricom-led consortium, clinching Ethiopia’s first independent telecom license with an $850 million bid, set the stage for a groundbreaking venture. The genesis of safaricom ethiopia venture promised key milestones and a transformative digital journey. 

By December 31, 2023, Safaricom’s flagship mobile money service, M-PESA, had achieved notable financial milestones, with revenue reaching Kshs 44.9 million, and Mobile Data Revenue soaring to Kshs 2.5 billion.

Ethiopia’s data-driven society demonstrated a remarkable appetite for data-driven services, exemplified by an impressive 4.76GB usage per chargeable mobile data subscriber. 

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Safaricom’s innovative strategies, including a robust network, positioned M-PESA as a pivotal player in Ethiopia’s financial services ecosystem, boasting 3.1 million registered customers.

Nationwide accessibility remained a key focus for safaricom  ethiopia, with geographical coverage extending to 33% of the population. 

Safaricom’s impact on Ethiopian society is multifaceted. Increased connectivity and M-PESA services catalyzed economic opportunities, empowered small businesses, improved access to financial services, and increased financial inclusion, contributing to transformative societal impact.

In a competitive landscape, Safaricom’s innovative strategies served as a beacon for navigating the intricacies of the Ethiopian market.

By avoiding price wars, engaging in network sharing, and building a new, technologically advanced network, Safaricom is charting a unique course. 

Additionally, Safaricom faced resistance in Ethiopia, particularly in the second-largest region, Amhara, where security concerns led to the temporary shutdown of its sites.

Steps to Activate M-PESA Services in Ethiopia:

Steps To activate M-PESA using a nominated number:

Customers will receive a confirmation SMS from M-PESA.

A compilation of SWIFT codes for accessing Safaricom services in Ethiopia :

Additionally, other Safaricom’s services in Ethiopia encompass various facets, including e-commerce through M-PESA Masoko, financial products like Fuliza and M-Shwari, mobile telephony, mobile money transfer, consumer electronics, and cloud computing. Additionally, Safaricom offers data services, music streaming, and fiber optic connectivity

Safaricom’s strategic vision goes beyond traditional telecommunications, aiming to leverage its expertise across multiple sectors to foster inclusive digital financial services in Ethiopia.

The financial success of the  safaricom ethiopia venture is underscored by the revenue generated by M-PESA in November 2023, totaling $43,368.

With 1.2 million customers actively using the product and facilitating transactions valued at KES 43.7 billion ($287 million), M-PESA has become a cornerstone of Safaricom’s strategy in Ethiopia.

The societal impact of M-PESA extends beyond transactions, with the platform contributing to micro-loans totaling $74.4 million, benefiting 2.4 million customers and facilitating over $3.6 billion in micro-savings. 

The potential economic impact is significant, with projections suggesting that mobile money services could lift 700,000 people out of extreme poverty, add $5.3 billion to Ethiopia’s GDP, and increase tax revenue by $300 million.

As of September 30, 2023, safaricom ethiopia had achieved several milestones, including the commercial launch of M-PESA services, the rollout of 2,057 sites in 22 cities, and attaining over 4 million three-month active customers.

Safaricom’s commitment to building a high-quality mobile network, reflected in the achievement of these milestones, positions the company as a key player in Ethiopia’s digital future.

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