Safaricom Ethiopia is facing operational setbacks as it grapples with the shutdown of its sites in the Amhara region, the country’s second-largest area. This action comes in response to a state of emergency declared by the Ethiopian Federal Government on August 4, prompted by clashes between the military and the Fano militia.
Read more: Safaricom’s Influence Declines as Foreign Investors Reshape NSE Trends
The chairman of Safaricom Ethiopia, Michael Joseph, emphasized the challenging nature of the Ethiopian market, highlighting the paramount importance of the country’s stability for its business operations. He acknowledged the impact of the state of emergency, which forced the company to close its sites in the Amhara region. This development has proven to be a significant challenge, disrupting the company’s plans for expansion across the country. Safaricom’s ambition was to have 3,000 network sites operational in Ethiopia by the end of 2024.
At the time of their latest filings, Safaricom Ethiopia had established 875 of its own network sites and had additionally collocated 397 sites, effectively covering 22 cities throughout the nation. The subsidiary had managed to garner 2.1 million 90-day active consumers, with the objective of reaching 10 million by 2024. Despite these challenges, Safaricom remains steadfast in its determination to launch its mobile money service in Ethiopia in the near future.
Read more: Safaricom’s Plan to Launch M-Pesa Services in Ethiopia Completed
In May, Safaricom successfully obtained a license from the Ethiopian Federal Government to offer mobile money services. This license came with a substantial financial commitment, requiring an investment of USD 150.0 million. As part of this obligation, Safaricom has already contributed USD 84.0 million towards the license. Despite this, Safaricom Ethiopia faced a considerable setback, reporting a substantial loss of Kshs 21.7 billion for the period ending in March 2023.
Email your news TIPS to editor@thesharpdaily.com
