Despite the ethnic tensions in Ethiopia, Safaricom has successfully launched its M-Pesa operations in the country a mere three months after obtaining the mobile money license. The inauguration of Safaricom Ethiopia’s Mobile Financial Services occurred on Wednesday, as the company aims to replicate the remarkable success it achieved in Kenya through M-Pesa.
Stanley Njoroge, the interim CEO of Safaricom Ethiopia, expressed his enthusiasm, stating that the company is thrilled to initiate M-Pesa services in Ethiopia which will usher in mobile financial services for their customers in the country. He added that the company’s commitment will extend towards enhancing the M-Pesa platform which will ultimately enhance customers’ quality of life.
Securing the mobile money license came after Safaricom paid investment fees amounting to USD 150 million (approximately Kshs 21.6 billion) on May 11. The revenue from mobile money operations, coupled with that generated from telecommunications services that commenced in October, is poised to bolster Safaricom’s efforts in realizing returns on its substantial capital investment of around USD 2 billion (equivalent to Ksh 288 billion) in Ethiopia over a five-year period.
The official launch of M-Pesa in Ethiopia follows an exhaustive three-month pilot study and testing, encompassing technical preparedness, crucial collaborations with banks, agent recruitment and training, and comprehensive onboarding procedures.
According to the telco, this service will enable Ethiopians to employ M-Pesa for domestic and international money transfers, merchant payments, airtime purchases, and seamless fund transfers between bank accounts and mobile money wallets.
This development takes place against renewed conflict in the Amhara region, which previously rallied its forces to support Ethiopian Prime Minister Abiy Ahmed in thwarting an attempt by Tigrayan forces to overthrow him. Ethiopia was gradually recovering from a two-year civil war that witnessed Tigrayan forces advancing towards Addis Ababa in 2021, causing disruptions to various businesses, including Safaricom, which had to withdraw its personnel temporarily.
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