Safaricom’s Ethiopian subsidiary reported robust customer growth, marking a 47.3% increase in active users over the six months ending in September.
The announcement during Safaricom’s first-half financial results presentation in Nairobi highlighted the expansion, which now brings the subsidiary’s monthly active user base to 6.1 million. The company disclosed that it currently serves 46% of Ethiopia’s population, reflecting the rapid market adoption of its services.
Despite the growth, Safaricom noted that Ethiopia’s currency devaluation impacted overall profitability. To mitigate the effects of foreign exchange challenges, Safaricom has taken steps such as renegotiating foreign currency-denominated contracts, engaging more local suppliers for specific services, and reducing its expatriate workforce.
Voice revenue saw a substantial boost, increasing by 27.1% to $4.01 million due to higher usage and a rising customer base. The number of one-month active voice customers surged by 63.8%, reaching 3.57 million.
Safaricom Ethiopia also reported that mobile data users more than doubled, with one-month active customers growing from 1.4 million to 3.5 million. Average data usage per subscriber saw strong gains, doubling to 6.56GB, driving a 10.8% increase in Average Revenue Per User (ARPU).
ALSO READ: MOBILY AND TELECOM EGYPT INK MAIDEN SAUDI SUBSEA CABLE DEAL
M-PESA revenue reached $189.1 thousand by the end of the half-year, with 8.31 million registered customers. Mobile data revenue also doubled, rising from $10.3 million to $25 million over the six months, fueled by increased usage, customer expansion, and targeted initiatives to boost smartphone adoption.
Safaricom’s continued growth in Ethiopia reflects both the expanding demand for digital services and the company’s strategic approach to navigating the market’s unique challenges.
