According to Safaricom Ethiopia, it has reached 10 million active users in the last ninety days, just four years after breaking into Ethiopia’s once-closed telecom sector.
The company revealed the milestone at a press conference on Tuesday at its Addis Ababa headquarters, demonstrating its rapid expansion in a market that has always been controlled by a single state telecom provider.
The company’s CEO, Wim Vanhelleputte, praised the progress but described it as merely a first step.
“Ten million active subscribers is not a small achievement,” he said. “But it’s not the final destination either. It’s a benchmark that tells us we’re on the right path, but we still have a long road ahead.”
Safaricom breaks Ethiopia’s telecom industry monopoly
Ethiopia’s decades-long monopoly in the telecom industry ended in mid-2021 when Safaricom was awarded a licence. Since then, the business has developed a rapidly growing 4G network that it claims now serves over 50 per cent of the population.
More than 150 towns and cities already have more than 3,100 network sites operational. According to the business, 31,000 new clients sign up every day on average.
Approximately 7.1 million of the 10 million active users frequently use mobile data services, a sign of Ethiopia’s growing need for digital content. Users now utilise 6.5GB of data every month, which is more than half as much as they used the previous year.
10 million subscribers’ milestone fuelled by Safaricom’s significant financial investment
There is a significant financial investment behind the data. Over the last four years, Safaricom Ethiopia claims to have invested over ETB 300 billion (about USD 2.27 billion) in digital financial services and infrastructure.
The company directly employs about 900 individuals, most of whom are Ethiopians.
Additionally, it projects that more than 20,000 people have obtained indirect employment due to its activities, such as selling SIM cards, allocating airtime, or assisting with expanding the network.
Safaricom’s corporate social responsibility
The telecom operator emphasised its community involvement in addition to its business expansion.
It has given more than 100 million birr to schools for free internet, routers, and laptops. It has also helped communities hit by natural catastrophes in areas like Ashewa, Gofa, and Afar.
Additionally, the Mekedonia Humanitarian Association received a donation of 10 million birr.
The company’s next primary objective is reaching financial break-even, which the CEO estimates could occur in the next six to twelve months. By doing this, money from lenders and shareholders may be directed into expansion rather than operational expenses.
Safaricom’s plan to reach 90% population
Additionally, Safaricom intends to reach up to 90 per cent of the population by December 2026 by nearly doubling its network sites to over 6,000. The business acknowledges that the road ahead won’t be simple, though.
Vanhelleputte stated that the company is now offering mobile data at “three times cheaper” pricing than the average below-cost price for the continent. Even though this has drawn people, he cautioned that the model is unsustainable.
“There is an urgent need for price rationalization, not just for Safaricom, but for the telecom sector as a whole,” he said. “If we’re serious about investing further, ETB 500 billion more will be needed across the industry in the coming years—we’ll have to rethink pricing.”