Kenyan telecoms giant Safaricom has reported a substantial reduction in losses from its operations in Ethiopia, signalling a strong turnaround in its regional expansion strategy.
The company also forecasts a surge in group earnings of up to 50% for the fiscal year ending March 2026, reflecting improving operational performance and growing market penetration.
Safaricom’s entry into Ethiopia—Africa’s second most populous nation—was viewed as a bold move into a previously closed telecoms market. After initial setbacks and high start-up costs, the company now reports a more optimistic outlook as subscriber growth and mobile money adoption begin to scale.
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In its latest earnings guidance, Safaricom credited the narrowing losses to cost optimisation, network expansion, and increased customer uptake of data and financial services. The firm’s Ethiopian subsidiary has steadily grown its user base and is benefitting from a broader shift in consumer behaviour towards digital connectivity and cashless payments.
The projected growth in earnings before interest, taxes, depreciation, and amortisation (EBITDA) comes at a time when the company is also consolidating its dominance in the Kenyan market. Safaricom continues to leverage its flagship M-Pesa platform to drive revenue, while investing in 5G infrastructure and regional partnerships to future-proof its services.
Analysts view the developments in Ethiopia as a validation of Safaricom’s long-term strategy to expand beyond Kenya and tap into emerging markets with high digital potential.
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With Ethiopia’s telecom sector liberalisation gaining pace, Safaricom’s improved financial performance could pave the way for deeper investment and service diversification in one of Africa’s fastest-growing economies.
