Kenyan telecoms operator Safaricom has boldly launched its M-Pesa operations in Ethiopia, three months after receiving a mobile money license. Safaricom Ethiopia's Mobile Financial Services, the unit responsible for operating M-Pesa, was officially announced on Wednesday in an attempt to replicate the unprecedented success experienced in other East African countries.
Stanley Njoroge, the interim CEO of Safaricom Ethiopia, expressed his excitement at the launch, saying that "M-Pesa is known to be a game-changer for financial inclusion."
"We are excited to go live with M-Pesa in Ethiopia and start providing mobile financial services to our customers," said Njoroge. "We will continue to broaden the services our customers receive from the M-Pesa platform that will improve the quality of life for our customers."
Safaricom paid an investment fee of $150 million to acquire the mobile money license in Ethiopia on May 11. Safaricom aims to recoup its estimated $2 billion investment in Ethiopia over five years through revenues generated from mobile money operations, combined with the telecommunications service launched nationwide in October last year.
The official launch of M-Pesa follows an intensive three-month pilot phase and rigorous testing to ensure technical readiness, establish key bank partnerships, as well as recruit, train, and onboard M-Pesa agents.
In the current fiscal year, Safaricom, which became Ethiopia's first private telecom operator in 2019, plans to invest between $277.3 million and $312 million in its Ethiopian unit, compared to $385.6 million spent in the previous fiscal year ending March 2023, according to The East African.
Between October 2022 and the end of March 2023, Safaricom Ethiopia attracted about three million customers, established a distribution network of more than 114 outlets, and expanded coverage to 22 regions through about 1,300 network sites.