Friday November 29, 2024
Mogadishu (HOL) — Safaricom has extended its M-Pesa Global service to Ethiopia, enabling mobile money transfers between Kenya and its East African neighbour.
“This partnership enables M-Pesa Ethiopia customers to receive secure and affordable transfers from M-Pesa Kenya,” said Elsa Muzzolini, Chief Financial Services Officer for Safaricom Ethiopia. “It also supports Ethiopia’s shift toward digital payments, driven by revised foreign exchange policies and increasing demand from the diaspora.”
The service, designed for Ethiopians living in Kenya and Kenyans residing in Ethiopia, simplifies cross-border transactions using only an M-Pesa wallet. Safaricom also enables M-Pesa Global users to send and receive money in over 190 countries, reinforcing its position as a leader in mobile money and international remittance.
Safaricom entered Ethiopia in 2022 as the first private telecom operator, introducing M-Pesa in August 2023 after securing a Payment Instrument Issuer License from the National Bank of Ethiopia. By May 2024, Safaricom Ethiopia reported 4.5 million registered M-Pesa users and 4.4 million active mobile customers, with network coverage reaching 40% of the population.
“This service exemplifies our commitment to making cross-border financial transactions efficient and cost-effective,” said Esther Waititu, Safaricom Kenya’s Chief Financial Services Officer. “We are proud to empower individuals and businesses across East Africa.”
The expansion complements Safaricom’s strategy to connect East Africa through financial services, including a recent partnership with Mastercard to scale digital payments in Kenya.
Despite its growth, Safaricom faces challenges in its home market. Kenyan lawmakers are revisiting a proposal to separate M-Pesa from Safaricom to address market dominance concerns. However, Safaricom remains committed to driving innovation and supporting economic integration in East Africa.