Safaricom is doubling down on its commitment to Ethiopia with plans to introduce savings and credit products via its M-PESA platform, aiming to unlock greater value in a market where traction has been slow. Since launching in August 2023, M-PESA has yet to replicate its success in Kenya, with earnings still modest despite Ethiopia’s vast market potential.
Currently, M-PESA in Ethiopia is primarily used for utility payments. Safaricom CEO Peter Ndegwa announced that the service is evolving into a full mobile financial platform. While no launch date was shared, the proposed introduction of savings and credit services represents a strategic move to strengthen M-PESA’s footprint and relevance in the Ethiopian financial services ecosystem.
The competitive landscape in Ethiopia is intense. M-PESA faces stiff competition from Ethio Telecom’s Telebirr, which already commands a subscriber base of over 51.5 million as of February 2025. In contrast, M-PESA has registered 2.4 million users in the country, signaling a significant gap Safaricom hopes to close with its upcoming financial products.
Despite limited traction, Safaricom Ethiopia is showing signs of growth. The unit generated service revenue of KES 8.89 billion ($68.9 million), but only a small fraction—KES 410 million ($3.2 million)—came from M-PESA, messaging, fixed-line, and wholesale. This underperformance underscores the urgency and importance of diversifying M-PESA’s offerings in the Ethiopian market.
Safaricom’s long-term bet on Ethiopia remains firm. The telco and its partners have invested over $1 billion in telecom and mobile money licences. The venture’s strategic composition, with stakes held by Vodacom Group, Sumitomo Corporation, and CDC Group, positions it to capitalize on Ethiopia’s ongoing financial sector reforms and liberalization.
With Ethiopia recently licensing its first investment banks and launching a national securities exchange, the country is signaling a new era for private sector-led financial innovation. Safaricom believes that a deeper, more inclusive financial platform—anchored by M-PESA’s future savings and credit services—could be the turning point for its Ethiopian business.
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