Safaricom Ethiopia has made KES 7.2 million ($43,368) in M-PESA income three months after it launched in August 2023.
M-PESA Ethiopia has a buyer base of 1.2 million customers, with 67% actively utilizing the product. The cell cash product registered 22,700 M-PESA brokers who’ve facilitated transactions with a complete quantity of two million and a price of KES 43.7 billion ($287 million). In Kenya, the place M-PESA has been in operation since 2007, income grew by 16.5% year-on-year (YoY) to KES 66.23 billion ($436 million), aided by a 12.0% YoY improve in common income per person (ARPU) to KES 344.05 ($2.26).
Ethiopia’s different efficiency metrics undermined Safaricom Group’s earnings, which reported a drop in income for HY2024, in comparison with the same interval in 2023. This decline is due to heightened monetary pressure on prospects, increased taxes, and forex devaluation. Regardless of a $400 million funding by the Group, which consists of Safaricom Kenya and Ethiopia, operations within the new market are but to yield optimistic returns.
After-tax income dropped for the group
Safaricom Group’s revenue after tax was KES 27.187 billion ($179 million) within the half-year (HY) ending in September 2023, down from KES 30.229 billion ($199 million) recorded within the earlier 12 months. In distinction, Safaricom Kenya’s revenue after tax grew to KES 40.609 billion ($267 million) within the HY beneath evaluation, up from KES 35.732 billion ($235 million) in the same interval in 2022. “The interval beneath evaluation was difficult for the enterprise, our customers, and the nation at massive. Our efficiency has been distinctive regardless of these sturdy headwinds brought about majorly by sturdy financial headwinds,” stated Safaricom Kenya CEO Peter Ndegwa in an announcement.
Safaricom launched within the Ethiopian market in October 2022, months after testing its providers in a number of cities with a inhabitants of over 120 million individuals. The enterprise was began following a bidding train wherein Safaricom, together with its companions Vodafone Group, Vodacom Group, Sumitomo Company, a global buying and selling and enterprise funding firm, and British Worldwide Funding (BII), the UK’s improvement finance establishment, emerged because the winners with a bid of $850 million.
Nevertheless, it was not clear on the time if Safaricom would launch its flagship product, M-PESA, in its new market. The event was clear after Ethiopian authorities licenced M-PESA in Could 2023 at $150 million. M-PESA operations started months later, in August 2023.
Ndegwa stated that the telco won’t change its steerage for the Ethiopian market, though modifications might be made in its Kenyan operations. “We’re additionally revising the Kenya Capex steerage because of the overseas trade influence from the depreciating Kenyan shilling from KSES 42 – 45 billion to KES 45 – 48 billion, consequently altering the Group steerage to KShs 85 – 93Bn. Ethiopia’s steerage stays unchanged,” he stated.