Safaricom expects its Ethiopian customer base to rise to more than 70 million within five years as the Kenyan operator seeks to capitalise on the shift from cash to digital payments in Africa’s second-most populous country.

The company entered Ethiopia in 2021 after securing the first private telecoms license, ending the monopoly of state-owned Ethio Telecom. It launched operations the following year and has since added 10 million subscribers

Speaking to Semafor, James Maitai, Chief Technology Officer, said the expansion plan rests on Ethiopia’s largely cash-based economy, where more than 95 percent of transactions are still conducted in cash. Safaricom is positioning its M-Pesa mobile money platform, which dominates the Kenyan market, to drive adoption of digital payments and financial services.

The group has forecast earnings growth of up to 50 per cent this financial year, with losses in Ethiopia expected to narrow significantly. Maitai told Semafor that early difficulties in setting up technology infrastructure had been overcome, enabling faster rollout.

Safaricom plans to more than double its base stations in Ethiopia, from fewer than 4,000 to over 10,000, in the next decade as it seeks to expand coverage and secure a foothold in the country’s rapidly growing telecoms market.