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Safaricom Granted License To Operate M-PESA In Ethiopia

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The company has recorded a solid performance reflecting the continued focus on solving customer problems and societal challenges in the period under review.
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Safaricom Granted License To Operate M-PESA In Ethiopia

The company has recorded a solid performance reflecting the continued focus on solving customer problems and societal challenges in the period under review.

Safaricom Telecommunications Ethiopia has officially been granted the license to operate mobile money services in Ethiopia. The licence, coming seven months after the commercial launch of GSM services.

The M-PESA license will open the country to the world’s largest mobile payment system and Africa’s largest Fintech, and the world’s first mobile money transfer system.

Peter Ndegwa, Safaricom PLC CEO said: “We are excited that this is a great milestone following our entry into Ethiopia. This positions us to provide essential financial services to the Ethiopian population. We are looking forward to launching and roll out the service over the next few months.”

Safaricom granted license to operate M-PESA in Ethiopia as the Group Revenue Hits KES 310.9 billion in FY23

M-PESA empowers over 30 million customers to transact, save or borrow money through their mobile phones. M-PESA catalyzed financial inclusion in Kenya to 84% from a low of 26.7% in 2006 according to the 2021 FinAccess Survey and generated over KES 117.2 billion ($886 million) in revenue in FY23.

He added: “Since the commercial launch in October, the brand is visible, deeply rooted in the Ethiopia and quickly becoming in every sense fabric of the society. The potential for Ethiopia is immense and we look forward to the future with optimism and excitement.”

In the period under review, Safaricom Telecommunications Ethiopia added close to 3 million customers and built a distributor network of over 114 outlets, delivered an award-winning premium quality network in 22 cities and regions; with close to 1300 network sites and over 900 staff, 81% of whom are Ethiopians.

Mr Ndegwa spoke during the announcement of the Full Year 2022/2023 results, which saw net income increase by 3.0% to KES 74.5 billion for Safaricom Kenya.

Safaricom increased its Group Service Revenue by 5.2% to KES 295.7 billion while the Group net income excluding minority interest declined by 10.6% attributable to expected start-up costs and investment in rolling out operations in Ethiopia within the year. Voice service revenue declined by 2.6% to KES 81.1 billion; mobile data revenue grew by 11.4% to KES 54.0 billion, while M-PESA revenue grew by 8.8% to KES 117.2 billion.

Mr Ndegwa said: “We have delivered a solid set of results despite the tough operating environment occasioned by slowdown in business activity in an election year in Kenya, tough macro environment as well as change in mobile termination rates which impacted our voice revenues significantly. The business is stable and regained a strong positive momentum in the second half of the year. Looking into the future, we passionately believe that our business is well-positioned to support our customers and provide technology solutions as we transition into a purpose-led technology organization in line with our 5 YR strategy.”

The company has recorded a solid performance reflecting the continued focus on solving customer problems and societal challenges in the period under review.

KEY HIGHLIGHTS – SAFARICOM GROUP (INCLUDING ETHIOPIA)

  • Service Revenue 5.2% to KES 295.7 Bn.
  • Voice revenue -2.6% to KES 81.1 Bn
  • M-PESA revenue 8.8% to KES 117.2 Bn.
  • Mobile data revenue +11.4% to KES 54.0 Bn.
  • Total customer base 8.1% to 45.9Mn.
  • One-month active M-PESA customers 5.2% to 32.1Mn.
  • One-month active mobile data customers 7.0% to 26.1Mn

Net Income

  1. Safaricom Group excluding Minority Interest -10.6% to KES 62.3 Bn
  2. Safaricom Plc Kenya, +3.0% to KES 74.5 Bn
  3. Safaricom PLC Operating Free Cash Flow +4.3% to KES 115.7 Bn.

Safaricom Granted License To Operate M-PESA In Ethiopia

About Safaricom

Safaricom is the leading telecommunication company in East Africa. Our purpose is to transform lives by connecting people to people, people to opportunities and people to information. We keep over 42 million customers connected and play a critical role in the society, supporting over one million jobs both directly and indirectly while our total economic value was estimated at KES 393 billion ($ 3.1 billion) for the 12 months through March 2022.

Listed on the Nairobi Securities Exchange and with annual revenues of close to KES 310.9 billion ($2.3 billion) as at March 2023. Safaricom provides connectivity through wide range of technology, 2G, 3G, 4G and 5G in aggregate covering over 99% of Kenya’s population.

We run the world’s largest mobile payment system and Africa’s largest Fintech, M-PESA, the world’s first mobile money transfer system. By empowering over 30 million customers to transact, save or borrow money through their mobile phone, M-PESA has driven financial inclusion in Kenya to 83.7% in 2021 of the adult population from a low of 26.7% in 2006 and generated over KES 117.2 Billion ($886 million) in revenue as at FY23.

Our subsidiary, Safaricom Telecommunications Ethiopia, plans to deploy world class network and services in 2022, to contribute to Ethiopia’s digital transformation.

Safaricom is an equal opportunity employer, actively recruiting staff from different backgrounds reflecting the communities that we serve. We are committed to equal gender representation at all levels. Our target is to achieve 50:50 senior management gender parity by 2025.

As part of our ongoing commitment to the Sustainable Development Goals (SDGs), we continue to work towards improving energy and resource efficiency in our network and facilities to reduce carbon emissions and our fuel consumption. We remain committed to becoming a Net Zero carbon-emitting company by 2050.

Felicity Gitonga
Felicity Gitonga is the founder of Africa Business News. abn, freelance writer, journalist, and author with a passion for telling stories.

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