Safaricom Plc has increased its financial commitment to its Ethiopian subsidiary, reinforcing its confidence in one of Africa’s most ambitious telecommunications expansion projects. During the three months to June 2026, the company injected an additional Kshs 1.4 billion into Safaricom Ethiopia, bringing its cumulative funding contribution to Kshs 159.6 billion from Kshs 158.2 billion at the end of March 2026. Although the latest disclosures do not specify the exact nature of the additional funding, the increase highlights Safaricom’s continued support for the business as it pursues growth and works toward profitability.
Safaricom Ethiopia is jointly owned by a consortium comprising Safaricom, its parent company Vodacom Group, Sumitomo Corporation, British International Investment (BII), and the International Finance Corporation (IFC). Earlier in 2026, Safaricom increased its ownership stake in the Ethiopian operation to 54.1% from 51.67% following a funding round that was restricted to Safaricom and Vodacom. The transaction strengthened Safaricom’s control over the business while diluting the holdings of the three minority investors, whose stakes now stand at 23.5% for Sumitomo, 9.5% for BII, and 6.81% for IFC. Despite the dilution, the co-investors retain the right to repurchase the 2.78% stake they lost during the latest capital raise.
The Ethiopian venture has now secured total funding amounting to Kshs 345.7 billion (US$2.67 billion). Equity financing accounts for the largest share at Kshs 298.3 billion (US$2.31 billion), complemented by Kshs 15.5 billion in local currency debt and Kshs 31.8 billion in foreign currency borrowings obtained from Standard Bank and the IFC. According to Safaricom, the business is financed through a combination of shareholder equity, deferred vendor payments, and third-party borrowings. The funding package also incorporates the US$850 million telecommunications license fee and the US$150 million M-Pesa license fee, alongside additional borrowing from the Ethiopian domestic market.
The increased investment comes as Safaricom Ethiopia intensifies efforts to achieve earnings before interest, tax, depreciation and amortisation (EBITDA) profitability by March 2027. Encouragingly, the business continues to register strong customer growth, providing a solid foundation for future revenue expansion. Active subscribers reached 14.7 million by the end of June 2026, up from 13.63 million three months earlier and representing a year-on-year increase of 46.1% from 10.06 million customers in June 2025.
The sustained customer growth, combined with continued shareholder support and a diversified funding structure, underscores confidence in the long-term prospects of Ethiopia’s telecommunications market. While the venture remains in its investment phase, Safaricom’s willingness to continue injecting capital reflects its commitment to establishing a profitable and sustainable presence in one of Africa’s largest and fastest-growing mobile markets. Achieving the targeted profitability by 2027 will be a significant milestone, not only for Safaricom Ethiopia but also for the broader consortium backing the project.
