Safaricom has reported impressive growth in its Ethiopian operations, announcing a 47.3% increase in monthly active users for the first half of 2024. This growth has brought the total number of active customers in Ethiopia to 6.1 million. The company also revealed that its network now covers 46% of the Ethiopian population, marking a significant milestone in its expansion within the country. The strong growth in customer numbers reflects Safaricom’s successful entry into Ethiopia’s telecom market.
Despite a challenging currency devaluation and ongoing foreign exchange reforms, Safaricom has continued to expand across its product offerings. The company has implemented several strategies to manage the short-term effects of these economic challenges, including renegotiating foreign currency-denominated contracts, onboarding local suppliers, and reducing its expatriate workforce. These steps are part of Safaricom’s efforts to remain agile and focused on long-term growth.
Voice revenue saw a 27.1% increase, reaching $4.01 million (Sh516.4 million), driven by a growing customer base and higher usage. The number of one-month active voice customers grew by 63.8%, reaching 3.57 million. Voice usage also increased significantly, with minutes of use growing by 52.2% to 97.15 million, reflecting the rising demand for Safaricom’s services in Ethiopia.
In addition to voice, Safaricom’s messaging revenue grew by a remarkable 98.4% to 36.7 million. The company also saw a surge in its SMS customer base, with one-month active SMS users rising to 1.87 million. This growth in messaging is supported by increased SMS usage per subscriber, which stood at 18.52 messages per month, further demonstrating Safaricom’s expanding reach in Ethiopia.
The mobile data segment also showed exceptional growth, with one-month active data customers more than doubling from 1.4 million to 3.5 million. Data usage per subscriber grew to 6.56GB, contributing to a 10.8% increase in Average Revenue Per User (ARPU), which reached Sh199.91. This strong data growth is attributed to Safaricom’s expanded 4G network and initiatives to drive smartphone penetration.
Safaricom’s mobile money service, M-Pesa, has continued to grow with 8.31 million registered users, generating $189.1 thousand (Sh24.4 million) in revenue. Mobile data revenue also saw a significant boost, doubling from $10.3 million (Sh1.32 billion) in the first half of 2023 to $25 million (Sh3.22 billion) in 2024. The strong data performance was driven by high usage levels, customer growth, and Safaricom’s investment in expanding its 4G network.
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