The number of active M-Pesa users in Ethiopia rose to 5.2 million, marking a 258.5% increase year-on-year in the quarter ending December 2025, boosting Safaricom performance in the new market.
The sharp increase follows the integration of M-Pesa with EthSwitch in October 2025, linking the platform to more than 30 banks and digital wallets regulated by the National Bank of Ethiopia.
Safaricom said the integration allows real-time wallet-to-bank and bank-to-wallet transfers, as well as interoperable merchant payments through EthQR. This has expanded acceptance across more than 50,000 merchants nationwide.
Transaction activity also rose significantly, with total M-Pesa transaction value increasing 192% to KSh364 million, up from KSh164.6 million in 2024.
Strategy focuses on financial inclusion
Safaricom Group CEO Peter Ndegwa said the company is expanding M-Pesa use cases to support merchants, micro, small and medium enterprises, and households while maintaining a path toward profitability.
“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 rollout aligns with Ethiopia national digital payments strategy, which aims to build an inclusive and interoperable ecosystem anchored on real-time infrastructure and reduced reliance on cash.
The policy direction reflects global trends where regulators are promoting open and connected payment systems to enhance competition and financial inclusion.
Telecom growth boosts revenue
Safaricom Ethiopia reported service revenue of KSh9.68 billion in the quarter, representing a 54.2% increase year-on-year, driven by growth in voice, data and mobile financial services.
Mobile data accounted for 67% of total service revenue, while average revenue per user rose 21.3% to KSh130.27 on a constant currency basis.
The company continues to expand its network and services in Ethiopia, which has a population of about 138 million, with a large share made up of young people.
“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,” Ndegwa said.
Safaricom entered the Ethiopian market after securing a telecommunications licence valued at $850 million in 2021. Approval to roll out M-Pesa services was granted in 2023.
Industry projections indicate Ethiopia could become one of Safaricom fastest-growing markets in the coming years, potentially surpassing its Kenyan operations in subscriber numbers and profitability.
