Safaricom Expands M-Pesa to Ethiopia to Tap Mobile Money Market

BREAKING NEWSOctober 15, 2024 at 11:06 AM UTC

TLDR

Safaricom extends M-PESA Global to Ethiopia for cross-border transactions, boosting mobile money penetration.
Safaricom acquired Payment Instrument Issuer License in Ethiopia, expanding access to over 190 countries.
Safaricom's customer base in Ethiopia doubles to 4.4 million, marking significant growth in the telecom market.

Safaricom has extended its M-PESA Global service to Ethiopia, enabling Kenya users to transfer money to the Horn of African nation via International Remittance. This expansion is part of Safaricom’s effort to boost mobile money penetration in Ethiopia and offers M-PESA users access to over 190 countries for cross-border transactions.

This follows the launch of M-PESA in Ethiopia in August 2023, after Safaricom secured a Payment Instrument Issuer Licence from the National Bank of Ethiopia. A Safaricom-led consortium had previously paid $150 million to acquire the mobile money license in May 2023.

Since launching as Ethiopia’s first private telecom operator in 2022, Safaricom’s customer base in Ethiopia has doubled to 4.4 million. CEO Peter Ndegwa highlighted the company's progress, with the Ethiopian network now nearly half the size of Kenya’s.

Key Takeaways

Safaricom’s extension of M-PESA Global into Ethiopia reflects the company's strategic push to increase mobile money usage in the region. The service is well-timed, as Ethiopia’s revised forex policy encourages digital payments. With Safaricom Ethiopia's customer base rapidly growing, M-PESA Global is set to enhance cross-border transactions and bolster business activities. Meanwhile, Safaricom faces regulatory scrutiny in Kenya, as lawmakers seek to separate M-PESA from Safaricom to address market dominance concerns.

Business

Ethiopia

Safaricom

Kenya

Expansion

Mobile Money