Safaricom's Ethiopia Business: Still in Build Mode
Safaricom's Ethiopia business remains in build mode, focusing on expanding network sites, digital finance rails, and population coverage. During the FY26 briefing, the company emphasized that it treats Ethiopia as a long-cycle infrastructure market. This means Safaricom is investing for the long term, not quick wins.
Key Focus Areas for Safaricom Ethiopia
1. Network Sites Expansion
Safaricom is rapidly building new network sites across Ethiopia. More towers mean better connectivity for more people. This is critical for reaching underserved areas and competing with the state-owned monopoly, Ethio Telecom.
- Over 1,000 sites already live in major cities and towns.
- Plans to add hundreds more each quarter.
- Focus on 4G and 5G-ready infrastructure.
2. Digital Finance Rails
Digital finance is a major growth driver. Safaricom’s M-Pesa platform is being adapted for Ethiopia. The company is building payment rails to support mobile money, transfers, and merchant payments.
- M-Pesa launched in Ethiopia in 2023.
- Now has over 10 million registered customers.
- Partnerships with banks and fintechs to expand services.
3. Population Coverage Goals
Covering more people is a top priority. Safaricom aims to reach 50% of Ethiopia’s population within the next 3–5 years. This requires building in rural and semi-urban areas where infrastructure is scarce.
- Current coverage: ~30% of population.
- Target: 50% by 2027.
- Investment in solar-powered towers for off-grid areas.
Why Ethiopia Is a Long-Cycle Infrastructure Market
Safaricom views Ethiopia as a long-cycle infrastructure market because building telecom networks in a country with difficult terrain, low income levels, and limited power supply takes time. The company is not expecting quick profits. Instead, it is investing heavily now to capture future growth as the economy develops.
What This Means for Users and Investors
For everyday users, this means slower service improvements at first, but better coverage and digital services over time. For investors, it signals a patient, strategic approach. Safaricom’s Ethiopia business may not break even for several years, but the long-term potential is huge given Ethiopia’s 120 million population.
Key Takeaways
- Safaricom is building aggressively in Ethiopia, not harvesting profits.
- Network sites, digital finance, and population coverage are the three pillars.
- Treating Ethiopia as a long-cycle infrastructure market means patience.
- M-Pesa and 4G/5G rollout are central to the strategy.
- Expect steady, not explosive, growth in the short term.
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