Safaricom Ethiopia has reported a massive 130.9% year-on-year surge in service revenue, hitting ETB 15.9 billion for the fiscal year ending March 31, 2026.
The stellar performance, announced during the Safaricom Group’s FY26 results in Addis Ababa, highlights the telco’s rapid scaling in Africa’s second-most populous nation.
The growth was fueled by a triple threat of expanding connectivity, mobile data hunger, and the viral adoption of digital finance. Mobile data remains the company’s financial backbone, generating ETB 9.6 billion, while voice revenue contributed ETB 3.0 billion.
M-PESA and Customer Base Hit New Milestones
The digital wallet, M-PESA, has officially moved from a “newcomer” to a “market staple,” with its customer base more than doubling to 5.2 million. Overall, the telco now serves 13.6 million 90-day active customers, a 54.2% jump from the previous year.
Infrastructure: The $5 Billion Vision
To maintain this momentum, Safaricom Ethiopia CEO Wim Vanhelleputte emphasized that while the company has already invested USD 2.6 billion, an additional USD 5 billion in investment is required to achieve total nationwide coverage.
The company’s rapid network expansion is anchored by 3,504 self-built towers now active across the country, supplemented by a strategic infrastructure-sharing agreement with Ethio Telecom.
Under this partnership, Safaricom Ethiopia leases approximately 1,400 additional towers, a collaboration that costs the firm between ETB 5 billion and ETB 6 billion in annual rental fees. These combined efforts have significantly boosted the telco’s footprint, allowing it to reach 59% 4G population coverage by the close of March 2026 as it continues its aggressive drive toward universal digital access.
FY26 Performance at a Glance
| Metric | FY26 Results | YoY Growth |
|---|---|---|
| Service Revenue | ETB 15.9 Billion | +130.9% |
| Active Customers (90-day) | 13.6 Million | +54.2% |
| M-PESA Customers | 5.2 Million | +119.4% |
| Total Funding Invested | USD 2.6 Billion | Increased |
| 4G Population Coverage | 59% | Targeted Expansion |
Path to Profitability
Despite the heavy capital expenditure, the Safaricom Group noted that losses in Ethiopia have narrowed significantly. The subsidiary now contributes 15% of the Group’s total service revenue growth, placing it on a clear trajectory toward EBITDA breakeven by FY27.
While the CEO acknowledged that current data pricing remains highly competitive, often below operational costs, the focus remains on a sustainable business model that balances affordable access with the massive capital required for fiber expansion and network density.
Source : http://ethiopiatoday.net/safaricom-ethiopia-revenues-surge-131-as-m-pesa-and-data-demand-explode/
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