When M-Pesa launched in Kenya in 2007, no one expected its global impact. Today, the mobile payment and money transfer service operates in over 170 countries, serving 70 million customers and processing 99 million transactions daily. Its success is rooted in its accessibility, security and universality, making financial transactions possible for millions through mobile phones.

Now, Safaricom’s entry into Ethiopia is set to trigger another financial revolution. The company launched its telecommunications network in Addis Ababa on October 6, 2022 after receiving a full-service Unified Telecommunications Service Licence. This is the first time a private company is challenging state-owned Ethio Telecom, a historic moment in Ethiopia’s telecom industry.

Rapid Growth in Ethiopia’s Untapped Market

With a population of over 120 million, Ethiopia is a huge opportunity for mobile financial services. Safaricom Ethiopia has reached 46% of the country’s population (52 million people) in just 2 years, it took 25 years in Kenya.

According to Safaricom Ethiopia CEO Wim Vanhelleputte, the country’s large unbanked population is perfect for M-Pesa’s fast adoption. The company has accelerated its mobile money services, launched M-Pesa in 7 months, it took 7 years in Kenya.

"What we are solving in Ethiopia with M-Pesa is digital payments, replacing cash transactions. If you solve a real problem for customers, success follows," said Vanhelleputte.

M-Pesa Disruption of Ethiopia’s Banking Sector

Before M-Pesa, money transfers in Kenya used to rely on public transport, was vulnerable to loss and theft. In Ethiopia, the challenge is cash dependency, M-Pesa will eliminate cash by offering convenient, secure and instant transactions.

As seen in Kenya, M-Pesa coming to Ethiopia will:

  • Increase financial inclusion, bring millions into the digital economy.

  • Disrupt traditional banking models, shift financial transactions from physical branches to mobile platforms.

  • Boost business efficiency, enable businesses to accept payments seamlessly through digital integration.Fintech expert James Maore says M-Pesa will transform Ethiopia’s financial sector. Kenyan banks initially opposed M-Pesa but later benefited from its growth, reaching more customers through mobile banking. Ethiopian banks will follow the same path.

Partnerships Fuel Growth

To drive adoption, Safaricom Ethiopia is working with fintech companies to enhance digital payments. Recently, M-Pesa partnered with LakiPay Financial Technologies SC, allowing merchants to integrate M-Pesa into their payment systems.

“This partnership reinforces our commitment to financial inclusion and digitalisation in Ethiopia,” said Elsa Muzzolini, CEO of M-Pesa Mobile Financial Services.

M-Pesa Global has also expanded to Ethiopia, enabling cross-border transactions between Kenya and Ethiopia, to boost trade, remittances and economic integration.

Future Prospects: Unlocking Ethiopia’s Digital Economy

M-Pesa’s expansion is in line with Ethiopia’s Digital 2025 Strategy which aims to use technology for economic transformation. With over 10.8 million M-Pesa users in Ethiopia, the service will be key to the country’s financial journey.

M-Pesa Africa CEO Sitoyo Lopokoiyit says the company’s universal platform allows each market to customise services based on local needs. Ethiopia has huge potential, with a young and tech-savvy population and growing smartphone penetration.

As M-Pesa grows in Ethiopia, it’s not just expanding a fintech product but redefining how an entire economy pays, saves and invests—bringing financial empowerment to Africa.