Safaricom Ethiopia has announced plans to launch remittance services, enabling Ethiopians living abroad to send money to their relatives back home.
This move is part of the company’s expansion into financial services, following changes in the country’s foreign exchange policy that have reduced the gap between official exchange rates and those in the parallel market.
Safaricom has a strong presence in the remittance sector in Kenya and South Africa.
In July, the company signed a memorandum of understanding (MoU) with international money transfer provider Dahabshil, signaling its intent to offer similar services in Ethiopia.
The planned remittance service will operate through Safaricom Ethiopia’s mobile financial platform, M-PESA, which was launched a year ago, after receiving a license from the National Bank of Ethiopia.
In addition to financial services, Safaricom Ethiopia is rapidly expanding its telecom network.
Two weeks ago, the company launched its network expansion in the Chiro cluster, which covers 32 cities and 114 sites across Western and Eastern Harerghe.
This strategic initiative aims to enhance telecommunications coverage in the region, support local economic activities, and provide improved connectivity for residents.
Safaricom Ethiopia has committed $1.5 billion to its network expansion over the next three years, with plans to install 5,000 new network towers across the country.
Currently, the company is providing telecom services through a bilateral agreement with Ethio Telecom but is steadily building its own infrastructure.
Safaricom has already deployed over 2,500 network towers, with 1,500 constructed independently.
Safaricom’s first telecom services in Ethiopia were launched in August 2022 in Dire Dawa.
Looking ahead, the company aims to provide telecom services to 50% of the Ethiopian population within the next three years and reach 98% coverage over the next decade.
Safaricom Ethiopia is a private limited company, with shareholders including Vodacom Group, Vodafone Group, Sumitomo Corporation, and CDC Group.
This expansion is set to play a pivotal role in Ethiopia’s growing telecommunications and financial services sectors.
