Safaricom Returns to Profit Growth as Ethiopia Losses Narrow

AFRICAN STOCKS AND FINANCEMay 13, 2025 at 11:06 AM UTC

TLDR

Safaricom grew its full-year profit by 11% to $540 million (KES 69.8 billion) in 2024, marking a return to growth after two years of earnings pressure tied to its expansion into Ethiopia
The recovery was driven by easing losses in Ethiopia and continued growth in mobile data and M-Pesa revenue in Kenya
Service revenue rose 10% to $2.8 billion (KES 371.4 billion) in the year to March, with total customer numbers rising 16% to 57.1 million

Safaricom grew its full-year profit by 11% to $540 million (KES 69.8 billion) in 2024, marking a return to growth after two years of earnings pressure tied to its expansion into Ethiopia. The recovery was driven by easing losses in Ethiopia and continued growth in mobile data and M-Pesa revenue in Kenya.

Service revenue rose 10% to $2.8 billion (KES 371.4 billion) in the year to March, with total customer numbers rising 16% to 57.1 million. The Kenyan unit remained the group’s primary profit driver, while Ethiopia contributed 9% of service revenue, up from near-zero a year ago.

Losses from Ethiopia fell sharply to $165.7 million (KES 21.4 billion) as subscriber numbers increased and Safaricom scaled its M-Pesa operations, launched in the market in August 2023. CFO Dilip Pal noted Ethiopia is “making more confident steps,” with improving unit economics.

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Key Takeaways

Safaricom’s aggressive entry into Ethiopia—Africa’s second-most populous country—has weighed on earnings since 2022, with infrastructure investments and regulatory hurdles delaying profitability. But FY2024 results show early signs of a turnaround. The company expects to further reduce Ethiopia losses to between $178.1 million and $201.3 million in FY2025, down from the prior year’s $472.4 million (KES 61 billion). Earnings before interest and taxes (EBIT) are projected to rise 50% to $1.16 billion (KES 150 billion) by March 2026. Safaricom's strategy is now focused on consolidating growth in Kenya, where M-Pesa remains central, while deepening its foothold in Ethiopia through mobile money and expanded infrastructure. Despite headwinds from foreign exchange pressures and economic volatility, the telco's diversified model appears to be regaining momentum across both markets.

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