In a historic move, Safaricom has been granted a license to operate its revolutionary M-Pesa money service in Ethiopia, marking the first time a foreign company has been allowed to provide such services in the country. This development is set to reshape Ethiopia’s financial ecosystem, bringing digital payments, savings, and credit solutions to millions of unbanked citizens.
But what does this mean for Ethiopia’s economy, consumers, and competitors like Telebirr? In this comprehensive guide, we’ll explore:
- The significance of Safaricom’s M-Pesa money service in Ethiopia
- How M-Pesa works in Ethiopia – services, fees, and limits
- Growth and adoption since launch
- Challenges and competition from Telebirr
- Future prospects – savings, credit, and remittances
1. Why M-Pesa’s Entry into Ethiopia is a Big Deal
Ethiopia, with a population of 120 million, has one of the lowest financial inclusion rates in Africa (just 35% in 2023). Before M-Pesa, the market was dominated by Ethio Telecom’s Telebirr, which had over 51.5 million users by 2025.
Safaricom’s entry breaks this monopoly, introducing:
- Instant money transfers (P2P, business payments)
- Bill payments (utilities, fuel, government services)
- International remittances (via partnerships with Dashen Bank)
- Future credit & savings products (planned for rollout)
This move aligns with Ethiopia’s financial sector liberalization, which also saw the launch of its first securities exchange in 2025.
2. How M-Pesa Works in Ethiopia – Registration, Limits & Fees
Registration Process
To sign up for M-Pesa in Ethiopia, users need:
- A Safaricom Ethiopia SIM card
- A valid ID (must be 18+ years)
- To dial *733# or visit an M-Pesa Agent
Transaction Limits
- Maximum wallet balance: 30,000 Birr
- Daily transaction limit: 30,000 Birr
- International remittances & utility payments are exempt from limits
Fees
- Free: Receiving money, checking balance, buying airtime
- Charged: Sending money, withdrawing cash (see pricing charts at Agents)
3. M-Pesa’s Growth in Ethiopia – Key Stats
Since its August 2023 launch, M-Pesa has seen:
- 2.4 million active users (as of March 2025)
- KES 20.6 billion (~$160M) in transactions
- 3,141 network sites (50% 4G coverage)
However, revenue remains modest (KES 410M/$3.2M in FY25) compared to Kenya, where M-Pesa contributes 44.2% of Safaricom’s revenue.
4. Challenges & Competition from Telebirr
M-Pesa faces hurdles in Ethiopia, including:
- Telebirr’s dominance (51.5M users)
- Regulatory restrictions (e.g., no overdrafts yet)
- High inflation & forex shortages
Still, Safaricom is betting on credit and savings products to boost adoption, mirroring Kenya’s success with Fuliza (overdrafts) and M-Shwari (loans).
5. What’s Next for M-Pesa in Ethiopia?
Safaricom plans to:
- Expand rural coverage (targeting 80% population reach)
- Introduce lending & savings (pending regulatory approval)
- Grow remittance services (via Dashen Bank partnership)
- Achieve profitability by 2027
Final Thoughts
Safaricom’s M-Pesa money service in Ethiopia is a watershed moment for financial inclusion. While challenges remain, the potential is enormous—especially as Ethiopia’s economy grows and digital adoption accelerates.
Will M-Pesa overtake Telebirr? Only time will tell, but one thing is clear: Ethiopia’s mobile money war has just begun.
What do you think? Will M-Pesa succeed in Ethiopia? Share your thoughts in the comments!
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