Safaricom is recording rapid growth in Ethiopia, with its flagship mobile money platform M-PESA reaching 5.2 million active users, a 258.5 percent year-on-year increase in the quarter ended December 2025.
The surge follows M-PESA’s integration with EthSwitch in October 2025, a move that has significantly expanded interoperability and accelerated adoption across the country’s digital payments ecosystem.
According to Safaricom, the EthSwitch connection links M-PESA to more than 30 banks and digital wallets regulated by the National Bank of Ethiopia, enabling real-time wallet-to-bank and bank-to-wallet transfers, as well as interoperable merchant payments through EthQR. This has expanded acceptance of the platform to over 50,000 merchants nationwide.
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Transaction activity has grown alongside user adoption, with total M-PESA transaction value rising 192 percent to KSh364 million during the period, signalling increased usage beyond peer-to-peer transfers into payments and commerce.
Speaking on the performance, Peter Ndegwa said the company’s growth strategy in Ethiopia is focused on expanding everyday use cases across the economy.
“M-PESA expansion into more diverse everyday use cases is designed to support merchants, MSMEs, enterprises and households while maintaining a path toward profitability,” he said.
The EthSwitch integration aligns with Ethiopia’s national digital payments strategy, which prioritises interoperability, real-time infrastructure, and reduced reliance on cash—factors that are accelerating mobile money adoption at scale.
Beyond financial services, Safaricom’s broader operations in Ethiopia also recorded strong growth. Service revenue increased by 54.2 percent year-on-year to $75 million (KSh9.68 billion) in the quarter, driven by expansion in voice, data, and financial services.
Mobile data continues to emerge as a major growth driver, accounting for 67 percent of service revenue, while average revenue per user rose 21.3 percent on a constant currency basis, reflecting rising digital consumption across the market.
Ndegwa reaffirmed Safaricom’s long-term commitment to the Ethiopian market, highlighting continued investments in infrastructure and innovation.
“Our vision in Ethiopia is to build a digitally connected and financially inclusive society by expanding nationwide 4G coverage, strengthening fixed broadband and deepening digital payments through M-PESA,” he said.
With a population of approximately 138 million—largely young and increasingly digital—Ethiopia is emerging as a key pillar of Safaricom’s growth strategy. Industry projections indicate the market could evolve into one of the company’s largest growth engines, potentially rivaling its core operations in Kenya.
Since securing an $850 million telecoms licence in 2021 and launching M-PESA in Ethiopia in 2023, Safaricom’s rapid traction underscores the successful expansion of its mobile money model, driven by interoperability, strategic partnerships, and a fast-evolving digital economy.
