Ethiopia’s economy still runs heavily on cash, with vendors exchanging bills in markets and commuters paying fares in coins on crowded buses. In this environment, Safaricom Telecommunications Ethiopia PLC sees a significant opportunity. Since entering the country in 2022 as the first private operator after decades of state monopoly, the company has gained around 10 million users and is now setting its sights on a much larger goal—reaching 70 million subscribers by 2030.
Central to this vision is mobile money. Safaricom’s M-Pesa platform has already transformed financial transactions in Kenya, enabling millions to access financial services outside traditional banking. Bringing the same model to Ethiopia, where millions remain unbanked, could revolutionize commerce and financial inclusion. As Safaricom’s CTO James Maitai noted, mobile money has the potential to reach millions who have had little to no access to financial services.
The journey, however, comes with challenges. Ethiopia faces currency shortages, political uncertainty, and infrastructure gaps, making expansion complex. Safaricom plans to grow its base stations from fewer than 4,000 to over 10,000 within the next decade to ensure reliable connectivity. Yet, competing with Ethio Telecom’s 83 million subscribers means that trust, reliability, and cultural alignment will be just as important as technology in winning over customers.
The broader African experience shows how transformative mobile money can be when regulators, infrastructure, and consumer trust align. With mobile penetration projected to reach 50% in Africa by 2030, Ethiopia represents a frontier for digital transformation. If successful, Safaricom’s expansion could reshape how millions of Ethiopians transact, save, and access financial services—demonstrating that the Kenyan mobile money model can thrive even in a complex and evolving market.
