Safaricom is experiencing rapid growth in Ethiopia, with its flagship mobile money platform, M-PESA, reaching 5.2 million active users, a 258.5% 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 Ethiopia’s digital payments ecosystem.
According to Safaricom, the EthSwitch connection links M-PESA to over 30 banks and digital wallets regulated by the National Bank of Ethiopia. This enables real-time wallet-to-bank and bank-to-wallet transfers, as well as interoperable merchant payments via EthQR, expanding platform acceptance to more than 50,000 merchants nationwide.
Transaction activity has also increased alongside user adoption. Total M-PESA transaction value rose 192% to KSh364 million, signaling growing use beyond peer-to-peer transfers into payments and commerce.
Peter Ndegwa, Safaricom CEO, highlighted the company’s growth strategy in Ethiopia: “M-PESA expansion into more diverse everyday use cases is designed to support merchants, MSMEs, enterprises, and households while maintaining a path toward profitability.”
The EthSwitch integration aligns with Ethiopia’s national digital payments strategy, which prioritizes interoperability, real-time infrastructure, and reduced reliance on cash-key factors driving large-scale mobile money adoption.
Beyond financial services, Safaricom’s broader Ethiopian operations also saw strong growth. Service revenue rose 54.2% year-on-year to $75 million (KSh9.68 billion) in the quarter, fueled by expansion in voice, data, and financial services. Mobile data is emerging as a major growth driver, accounting for 67% of service revenue, while average revenue per user increased 21.3% on a constant currency basis, reflecting rising digital consumption.
Ndegwa reaffirmed Safaricom’s long-term commitment to Ethiopia: “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.”
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 suggest the market could become one of the company’s largest growth engines, potentially rivaling its core operations in Kenya.
Since securing an $850 million telecoms license in 2021 and launching M-PESA in Ethiopia in 2023, Safaricom’s rapid traction underscores the success of its mobile money model, driven by interoperability, strategic partnerships, and a fast-evolving digital economy.
