Safaricom’s bet on M-PESA in Ethiopia is paying off dramatically, with active users surging 258.5% year-on-year to 5.2 million in the quarter to December 2025.
The explosive growth was driven largely by M-PESA’s October 2025 integration with EthSwitch, a move that significantly expanded seamless connectivity and unlocked new everyday use cases across the Ethiopian economy.
Safaricom said the EthSwitch connection links M-PESA to more than 30 banks and digital wallets regulated by the National Bank of Ethiopia, enabling real-time wallet-to-bank and bank-to-wallet transfers, as well as interoperable merchant payments via EthQR.
This has rapidly expanded acceptance to over 50 000 merchants nationwide.
Transaction volumes mirrored the user growth, with total M-PESA transaction value rising 192% to KSh364 million, highlighting deepening usage beyond basic transfers into payments and commerce.
Safaricom Group CEO Peter Ndegwa emphasised that the company’s strategy is firmly anchored on expanding use cases across the economy.
“M-PESA expansion into more diverse everyday use cases is designed to support merchants, MSMEs, enterprises and households while maintaining a path toward profitability,” he said.
The EthSwitch integration aligns closely with Ethiopia’s national digital payments strategy, which prioritises interoperability, real-time infrastructure, and reducing reliance on cash, creating fertile ground for mobile money adoption at scale.
Beyond mobile money, Safaricom’s broader Ethiopian operations also posted strong gains. Service revenue rose 54.2% year-on-year to $75 million (KSh9.68 billion) in the quarter, supported by growth in voice, data and financial services.
Mobile data emerged as a key growth engine, accounting for 67% of service revenue, while average revenue per user increased 21.3% on a constant currency basis, reflecting rising digital consumption.
Ndegwa said the operator is doubling down on long-term investments in connectivity and innovation to capture Ethiopia’s vast potential.
“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,” he said.
With a population of about 138 million, largely young and increasingly digital, Ethiopia is shaping up as a cornerstone of Safaricom’s future growth. Industry projections suggest the market could become one of the telco’s biggest growth engines, potentially rivaling its Kenyan operations in scale.
Having secured an $850 million telecoms licence in 2021 and launched M-PESA in 2023, Safaricom’s rapid traction in Ethiopia now signals a successful replication of its proven mobile money model—supercharged by interoperability, partnerships, and a fast-evolving digital economy.
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