After seven months following the launch of GSM services, Safaricom Ethiopia has been authorised to operate mobile money services in Ethiopia.
With the M-PESA license, the Eastern Africa country will be opened to the largest global payment system and Africa’s top fintech, including the world’s first mobile money carry over system.
In his speech, Safaricom PLC CEO, Peter Ndegwa, he made known the company’s enthusiasm as it is a big landmark subsequent to their entry into the country.
He stated that the license places the company in important financial services provision to the population of the Eastern Africa country. He is also anticipating the launch and release of the service over the next few months.
M-PESA allows more than 30 million users to save, transfer or borrow money via mobile phones. M-PESA accelerates financial annex in Kenya from 26.7% to 84% in 2006 and produced above KES 117.2 billion which is $886 million in revenue in 2023 financial year.
Safaricom Ethiopia added close to 3 million users and increased a distributor network of more than 114 passages. It also delivered award-worthy high quality network in 22 regions and cities with almost 1300 network sites and more than 900 staff in the period under review.
The company’s Group Service Revenue soared to KES 295.7 billion by 5.2% while the net earnings reduced by 10.6%, with the exclusion of minority interest which is ascribed to anticipated start-up costs.
While M-PESA revenue increases to KES 117.2 billion by 8.8%, Voice Service Revenue reduced by 2.6% to KES 81.1 billion and mobile data revenue soared to KES 54 billion by 11.4%.
Ndegwa noted the company’s achievements despite the challenges faced by slowdown in business activity during election in Kenya ranging from tough macro environment to mobile termination rates change.
Professing the stability of business in the second half of the year, Ndegwa is certain that the company is well positioned to provide technology solutions and support to customers.