Safaricom Ethiopia has reported a significant increase in its customer base, growing by approximately 250,000 subscribers to reach 4.6 million by the end of Q2 in July. This growth reflects the company’s aggressive expansion strategy and efforts to increase its market presence. As of the end of June 2024, Safaricom Ethiopia had 4.6 million three-month active customers, with one-month active customers totaling 3.4 million.
The company’s recent growth has been bolstered by its expansion into the Tigray region, which has contributed to the rise in its customer numbers. The Service Revenue Average Revenue Per User (ARPU) saw a notable increase of 87.9% year-over-year, reaching KES 155.3 by the end of Q1 FY25, demonstrating the company’s commercial momentum and growing market impact.
Safaricom Ethiopia, launched in 2022, represents a significant step in Safaricom PLC’s strategy to expand beyond Kenya. The Ethiopian unit is a joint venture with Vodacom Group, Sumitomo Corporation, and British International Investment. The entry into the Ethiopian market has been marked by considerable investment, including the recent acquisition of a mobile money license from the National Bank of Ethiopia, which opens up new opportunities for growth through M-Pesa.
Despite the promising expansion, the capital-intensive investments in Safaricom Ethiopia have impacted Safaricom PLC’s overall profitability. For the full year ending March, Safaricom PLC reported an 18.71% decrease in profit, totaling Sh42.7 billion. This dip reflects the substantial financial commitment required for expanding into new markets.
The strategic investments and expansions are part of Safaricom’s broader vision to enhance its regional footprint and leverage new revenue streams. The growth in Safaricom Ethiopia’s subscriber base is a positive indicator of the company’s ability to scale its operations and adapt to new market dynamics.
As Safaricom Ethiopia continues to build its presence in the Ethiopian telecom market, the focus will remain on enhancing customer experience and capitalizing on new business opportunities to drive sustained growth.
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