The milestone comes less than four years after the telecom operator began commercial operations, as its growing customer base pushes the business closer to financial breakeven.
Safaricom Ethiopia has surpassed 15 million 90-day active subscribers, marking a significant milestone as the telecommunications operator commemorates five years since receiving its Unified Telecommunications Service License from the Ethiopian government.
The company received the licence on 9 July 2021 and commenced commercial operations in October 2022, following an initial period of establishing its network, distribution infrastructure and operational capabilities in the Ethiopian market. The latest subscriber milestone means Safaricom Ethiopia has built a customer base of more than 15 million in less than four years of commercial operations, while simultaneously expanding its physical network across the country.
According to the company, it has now established more than 3,500 network sites, with its network reaching approximately 60%of Ethiopia’s population. All the sites are 4G-enabled and 5G-ready, positioning the operator to support increasing demand for mobile data and digital services as connectivity expands. “Since receiving our license, we have built more than 3,500 network sites, with our network now reaching around 60% of the country’s population,” said Wim Vanhelleputte, Chief Executive Officer of Safaricom Ethiopia. “All our sites are 4G-enabled and 5G-ready, making our network state-of-the-art. This represents one of the fastest network rollouts by a greenfield telecom operator in Africa, and one of the fastest globally for a new entrant building a nationwide network from scratch.”
Scale-up brings business closer to breakeven
The rapid expansion has required substantial investment in infrastructure, technology, distribution and operations as Safaricom Ethiopia established itself in a market that was only recently opened to competition.
The company says the growth in subscribers and revenues is now bringing the business closer to financial breakeven, after five years of investment. For Safaricom Ethiopia, the subscriber milestone therefore represents more than customer acquisition. It signals progress towards building a commercially sustainable telecommunications operation in one of Africa’s largest markets.
The company’s network footprint has also continued to extend beyond major urban centres, bringing connectivity to smaller towns and communities and expanding access to mobile and digital services.
The development comes against the backdrop of Ethiopia’s broader telecommunications liberalisation, which has opened up the sector to new investment and increased competition. Since the liberalisation process began, the country’s digital ecosystem has experienced increased connectivity, higher data consumption and faster internet access, alongside growing adoption of digital payments and other technology-enabled services.
Safaricom Ethiopia’s expansion has consequently taken place alongside a wider transformation in how individuals and businesses access telecommunications and digital services.
Beyond connectivity
The company’s impact in Ethiopia has also extended beyond its core telecommunications business. Safaricom Ethiopia says it has witnessed the emergence of a growing pool of information technology talent in the country and has participated in efforts supporting the development of local capabilities. The company has also reported ETB139 million in direct investment in community development and support over the past four years of operations. Its shareholders and partners have contributed a further ETB545 million, bringing the total investment in communities to ETB684 million during the period.
Vanhelleputte said the company’s contribution to Ethiopia’s development extends beyond its commercial operations. “We have also witnessed the emergence of world-class talent in information technology in Ethiopia, and we have played our part in supporting that journey,” he said. “Beyond the impact of our core business, we have directly invested ETB139 million in community development and support, while our shareholders and partners have contributed an additional ETB545 million. This brings the total investment in communities to ETB684 million over the past four years of our operations.”
The figures underline the wider footprint of the company’s entry into the Ethiopian market, from investment in telecommunications infrastructure to community programmes and technology-related capabilities.
A changing digital economy
Safaricom Ethiopia’s growth comes as telecommunications becomes increasingly intertwined with the broader digital economy. Mobile connectivity has become an important gateway to digital payments, online commerce, financial services, information and other technology-enabled economic activities. As network coverage expands and smartphone and data usage increase, telecommunications operators are increasingly competing not only on voice services, but also on the wider digital ecosystems built around their networks.
In Ethiopia, this transition has coincided with the gradual opening of the telecommunications market, creating new opportunities for private investment and accelerating the development of digital infrastructure. Safaricom Ethiopia’s five-year journey consequently offers a snapshot of that transformation.
From receiving its licence in 2021 to commencing commercial operations in 2022 and subsequently crossing the 15 million subscriber mark, the company has moved from market entry to significant scale in a relatively short period. Its 3,500-plus network sites and approximately 60 per cent population coverage demonstrate the scale of infrastructure investment required to establish a nationwide telecommunications business, while the growing subscriber base is providing a larger foundation for revenue growth.
The approach towards breakeven will now be an important next phase of the company’s Ethiopian journey as it seeks to convert the scale achieved during its expansion period into sustained commercial performance.
For Ethiopia’s digital economy, however, the significance of the milestone extends beyond Safaricom Ethiopia’s balance sheet. The expansion of connectivity, increased competition and growing digital adoption are reshaping the environment in which consumers and businesses interact with technology. Five years after receiving its licence, Safaricom Ethiopia has established itself as a significant participant in that changing landscape and its latest subscriber milestone points to the scale of the opportunity still ahead.
