Safaricom has broadened the reach of its M-PESA Global money transfer service by introducing it to Ethiopia, enabling customers of M-PESA Kenya to execute mobile money transfers to their counterparts in M-PESA Ethiopia through the M-PESA International Remittance feature. This strategic move is designed to boost the adoption and usage of mobile money services within Ethiopia. Additionally, this expansion allows M-PESA customers to engage in money transfers with over 190 countries globally.
This development comes 14 months subsequent to Safaricom’s initiation of its M-PESA mobile money service in Ethiopia in August 2023. This was made possible after Safaricom obtained a Payment Instrument Issuer Licence from the National Bank of Ethiopia. In May 2023, a consortium led by Safaricom was granted a license to introduce M-PESA mobile money services in Ethiopia, for which it paid $150 million to the National Bank of Ethiopia (NBE).
Following the acquisition of the license, M-PESA underwent a three-month pilot and testing phase from May to August, focusing on ensuring technical readiness, establishing key banking partnerships, and the recruitment, training, and deployment of M-PESA agents. Moreover, with its launch in 2022, Safaricom marked its entry as the first private telecom operator in Ethiopia.
By the end of the fiscal year on March 31, 2024, Safaricom reported that its active customer base in Ethiopia had surged to 4.4 million, effectively establishing a network nearly half the size of its Kenyan counterpart. “We are delighted with the commercial progress in Ethiopia and take pride in achieving this with a Safaricom Ethiopia team that is 90% Ethiopian,” remarked the CEO.
Esther Waititu, the Chief Financial Services Officer at Safaricom Kenya, highlighted the significance of the M-PESA Global launch in Ethiopia, noting that it will facilitate easier, more efficient, and cost-effective cross-border transactions and bill payments within the region. Waititu emphasized that this initiative not only serves customers needing to transfer money to Ethiopia but also offers a reliable and economical solution for businesses engaging in transactions.
Elsa Muzzolini, the Chief Financial Services Officer for Safaricom Ethiopia, during the launch ceremony, pointed out that the expansion is particularly timely given the recent changes in Ethiopian forex policy. These changes encourage the diaspora and business owners to adopt digital payment methods for remitting money back home.
In related developments, Kenyan legislators have reignited efforts to separate Safaricom from its M-PESA service. This move follows the reintroduction of the 2022 Information and Communications (Amendment) Bill, which seeks to bifurcate the entities, thereby enhancing regulatory oversight and diminishing Safaricom’s dominance in the market.
