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# Safaricom launches M-Pesa in Ethiopia to challenge state-owned platform
- URL: https://www.techloy.com/safaricom-launches-mpesa-in-ethiopia/
- Published: 2023-05-16T13:46:56.000Z
- Updated: 2023-05-16T13:46:56.000Z
- Author: Techloy
- Tags: / News, Mobile Money, Ethiopia

[Safaricom](https://www.techloy.com/mpesa-enters-remittance-market/), the leading East African telco, has obtained a payment instrument issuer license – at a fee of $150 million – from the National Bank of Ethiopia, enabling it to expand its mobile money service, M-Pesa, into the country.

The license puts Safaricom in direct competition with Telebirr, the state-owned mobile money provider in Ethiopia.

M-Pesa has a proven track record of promoting financial inclusion in Africa, serving over 51 million customers across seven countries. Safaricom Ethiopia CEO Anwar Soussa expressed confidence in the potential of M-Pesa in Ethiopia, citing the country's population of 120 million as an unparalleled opportunity.

Last year, the Ethiopian government amended its national payment systems proclamation to allow foreign-owned telecom operators to offer mobile financial services in the country.

[Kenyan mobile payment service M-Pesa enters the remittance marketM-Pesa, a mobile financial service offered by Kenyan telecoms giant Safaricom, is making strides in the remittance market through a partnership with e-commerce giant Amazon. The service, launched in 2007, has grown to become a major financial service provider in the East African region, with over 5…![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/size/w256h256/2021/07/techloy-dot.png)TechloyAcquah Nana Yeboah![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/2023/02/E4pdA5uXoAQfeFt.jpeg)](https://www.techloy.com/mpesa-enters-remittance-market/)

Since its launch in Ethiopia's capital city, Addis Ababa, in October 2022, Safaricom has garnered over three million subscribers and [expanded its network to 25 cities](https://www.techloy.com/cost-of-mobile-device-5g-adoption-in-africa/), covering 10% of the population. The company plans to invest $300 million annually in Ethiopia over the next decade, building on its existing $1.2 billion investment.

Safaricom Ethiopia is backed by an international consortium consisting of Vodafone Group, Safaricom PLC, Vodacom Group, Sumitomo Corporation, and British International Investment.

Despite facing challenges and a reported 20% drop in core earnings due to the costs of entering the Ethiopian market, Safaricom remains optimistic about replicating the success of M-Pesa in Kenya in its expansion into Ethiopia.