M-Pesa Ethiopia Reports Sh45m Revenue in Q3

m pesa ethiopia reports sh45m revenue in q3
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Safaricom’s M-Pesa operations in Ethiopia recorded revenue of Sh44.9 million for the nine months ending in December 2023, marking a significant increase from the initial four months of operation which earned the telco Sh7.2 million. The number of registered M-Pesa customers surged to 3.1 million, up from 1.2 million in the previous financial year, with transactions totaling Sh18.5 billion.

The National Bank of Ethiopia (NBE) underscores the untapped potential for M-Pesa in Ethiopia, where only 45% of adults have financial institution accounts. Ethiopia’s National Financial Inclusion Strategy aims to boost accessibility of banking services to 70% of adults by 2025, partly through scaling digital payments like mobile money services. The country also targets increasing digital payment usage from 20% to 49% by 2025.

Safaricom perceives an opportunity for M-Pesa to replicate Kenya’s success, where financial inclusion rose from 27% in 2006 to over 84% in 2021 after 20 years of operations. In the reported period, total revenue, including voice, messaging, and mobile data services, surged by 73.8% to Sh4.8 billion compared to the previous six months.

Voice revenue reached Sh678 million, while messaging and mobile data earned revenues of Sh28.2 million and Sh2.5 billion, respectively. The mobile data segment, leading in revenue provision, witnessed an increase in one-month active mobile data customers to 1.81 million from previous quarters.

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Safaricom CEO Peter Ndegwa expressed contentment with the network expansion in Ethiopia and the positive growth momentum of M-Pesa. Since the commercial launch in October 2022, Safaricom recorded nine million gross customer additions and achieved 4.3 million 90-day active customers by December 2023, covering 33% of the population and fulfilling license coverage obligations.

M-Pesa’s services in Ethiopia encompass deposits, withdrawals, transfers (P2P), airtime and data purchase, M-PESA to Bank (C2B) and Bank to M-PESA (B2C) transfers, merchant payments, and international money remittances (inbound transfers only). Safaricom plans to introduce additional services while focusing on customer education and awareness to further enhance financial inclusion in Ethiopia.

Source: Amnon Free Press, Kenya

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