Prominent mobile phone operator in the Eastern Africa region, Safaricom, has posted 3.1 million M-PESA customers since its launch in Ethiopia.
Launched by Safaricom in Kenya, in 2007, M-PESA is a mobile banking service that allows users to store and transfer money through their mobile phones. M-PESA basically enables the making of deposits, withdrawals, transfers (P2P), airtime and data package purchases, M-PESA to Bank (C2B) and Bank to M-PESA (B2C), merchant payments (with transacting tills) and international money remittances services (inbound transfers only).
M-Pesa, introduced in Kenya as an alternative way for people in the country to have access to financial services, kickstarted operations in Ethiopia in August 2023.
Read also:
Meet Nmesoma Okonkwo, a self-taught product designer who spends her free time mentoring other women
On 10th May 2023, the National Bank of Ethiopia (NBE) granted the payment instrument issuer license to the Safaricom M-PESA Mobile Financial Services PLC (Safaricom M-PESA ET) upon fulfilling the set conditions (incorporation of the subsidiary, proof of payment of US$ 150 million for the investment protection fee and the paid-up capital of ETB 50Million).
Now giving a Q3 2023 update on its operations in the East African country, Safaricom says M-PESA now has 3.1 million customers in the country populated by 119 million people. Also, given the low level of financial inclusion in Ethiopia, opportunities still remain untapped, per Safaricom.
More on the Safaricom Ethiopia report
According to the Safaricom Q3 2023 update, Ethiopia now has 26.4 thousand M-PESA agents and 43.1 thousand merchants. Also, the numbers are expected to grow as the Safaricom network expands and as M-PESA penetrates the market.
Safaricom says that 63 million people in Ethiopia are over 18 years, with 13.5 million being between the age of 13-18 years. This presents the opportunity for M-PESA to drive financial inclusion to levels seen in Kenya after over 20 years of operations in the country.
According to Safaricom PLC CEO Peter Ndegwa:
“As of 31 Dec 2023, we had launched 2,242 base stations (1,252 own-built & 990 collocated) covering 33 cities including large and medium towns. This represents 33% of population coverage. Our focus now is to densify connectivity to continue enhancing the quality of connectivity as we create a contiguous network.”
The CEO also added that:
“We have covered 33% of the population and are on track to meet all license coverage obligations. Mobile data is a key proposition in Ethiopia with usage per chargeable Mobile data subscriber now at 4.76GB as at the end of Q3. We are encouraged by this momentum in usage levels which has now surpassed Kenya.”
According to Peter Ndegwa, the company is now interoperable with 9 banks including the Commercial Bank of Ethiopia, Dashen Bank, Bank of Abyssinia, Awash International Bank, Co-operative Bank of Oromia, Abay Bank, Hibret Bank, Berhan Bank and Bunna Bank for M-PESA to Bank. These connections are expected to drive the bank to M-PESA transactions.
Read also:
Senegal shuts down internet services as protests broke out following election postponement
On Monday, Safaricom announced that it will block all unregistered users of its mobile transfer service M-Pesa. Per reports, there were more than 49,000 unregistered M-Pesa users who could receive or send money prior to the directive.
With the new directive, users of unregistered mobile money services like Airtel Money and T-Kash from Telkom will be prevented from receiving or sending money to registered M-Pesa accounts.
Technext Newsletter
Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!
