Safaricom Ethiopia Boosts Access to 4G Internet, Transforms Mobile Services

A recent report from British International Investment (BII) highlights significant advancements in Ethiopia’s telecommunications sector, largely credited to Safaricom Ethiopia, a mobile network operator backed by UK investments.

This initiative has revolutionized access to fast 4G mobile internet for millions of people across the nation.

Established in 2021, Safaricom Ethiopia emerged from a consortium that included BII, the International Finance Corporation (IFC), Safaricom, Sumitomo Corporation, Vodacom, and the Vodafone Group.

Following the liberalization of Ethiopia’s telecom market in 2019, Safaricom Ethiopia secured the country’s first mobile network license granted to a private entity, launching its services in 2022.

The report, titled “Impact of Investment in the Ethiopian Telecoms Market – The Story So Far,” co-commissioned by BII and Safaricom Ethiopia, assesses the transformative changes that have unfolded since the market opened to private investment.

The findings reveal a remarkable reduction in mobile data costs, with prices plummeting by nearly 70%. By June 30, 2024, Safaricom Ethiopia had attracted 4.4 million subscribers and established almost 3,000 network towers providing 2G, 3G, and 4G services, reaching 44% of the population and significantly increasing the availability of 4G coverage.

An analysis conducted by Analysys Mason, which features in the report, elaborates on the competitive landscape shaped by Safaricom’s entry into the market. The findings illustrate how investments in digital infrastructure have led to lower mobile service costs and enhanced service quality for millions of Ethiopians. Key highlights of the report include:

• A dramatic reduction in prices for mobile and data services due to increased competition.
• Insights into potential socioeconomic benefits derived from improved digital connectivity, supported by case studies from similar African markets.
• Access to mobile phones has expanded to 81% of Ethiopian households.

During a recent visit to Ethiopia, UK Minister for Africa Lord Collins remarked, “Safaricom Ethiopia is a company that has given millions of Ethiopians vital and affordable digital services.”

He emphasized that the collaborative investment efforts from BII and other stakeholders have positively influenced the Ethiopian mobile industry’s evolution.

Abhinav Sinha, BII’s Managing Director and Head of Technology, commented on the report’s findings, stating, “Safaricom Ethiopia is putting the internet in the hands of millions, reducing prices and enhancing services. Mobile competition is already making a significant impact, and the report illustrates future opportunities to bolster society and the economy.”

The report particularly underscores the potential of Ethiopia’s mobile money market as a catalyst for economic advancement.

Safaricom’s M-PESA service, launched in Ethiopia in August 2023, has attracted over 5.8 million registered users, providing essential financial services to individuals lacking bank accounts or facing limited access to banking.

This service has already transformed financial inclusion in Kenya and is poised to drive similar changes in Ethiopia.