The executives of Safaricom say they are looking to break even on their Ethiopian venture some time in 2027, reporting that Safaricom Telecommunications Ethiopia PLC saw its losses narrow by more than half in the six months leading up to September.

Presenting a half-year performance report in Nairobi earlier this week, Safaricom CEO Peter Ndegwa revealed the group’s Ethiopia unit registered close to 16 billion Birr in losses between March and September.

The figure is 53 percent lower than the losses Safaricom Ethiopia suffered during the same period last year. The firm has yet to turn a profit since it acquired Ethiopia’s first-ever private telecom operator’s license in May 2021 for an USD 850 million fee.

However, Ndegwa says its parent company in Nairobi is optimistic about future prospects.

“Ethiopia is full of promise,” said the CEO. “We are engaging the government and key stakeholders to navigate market repair caused by the impact of currency reforms.”

Ndegwa says there is a need to review connection prices, particularly for mobile data, in light of the currency devaluation.

The federal government’s decision to float the currency in July 2024 only further complicated Safaricom Ethiopia’s operations, which were already under pressure from conflict-related restrictions, security issues, and stiff competition.

An October 2025 report from the World Bank and Digital Development Partnership (DDP) criticized what it described as an uneven playing field between Safaricom Ethiopia and state-owned giant Ethio telecom.

The report raised concern about “possible preferential arrangements for state-owned enterprises in handling government mobile money transactions” and alleges that Ethio telecom has blocked access to Safaricom apps like its flagship mobile money platform mPesa.

Safaricom Ethiopia lost USD 325 million in 2024, according to the report.

“Safaricom’s FY24 revenue (USD53.6 million) does not even cover the annual costs of its licenses (USD 1 billion over 15 years, including mobile money, or USD 66.7 million per year). Thus, this raises concerns about long-term investment sustainability and return on capital,” it reads.

The World Bank, which extended a USD 150 million loan to the consortium behind Safaricom Ethiopia through the International Finance Corporation (IFC), wants to see the Ethiopian Communications Authority take measures to correct what it sees as unfair competition.

“These concerns warrant further investigation by national authorities,” reads its October report.

The report also highlights challenges facing Safaricom in terms of infrastructure, which it relies on Ethio telecom and state-owned Ethiopian Electric Power (EEP) to provide. It reveals Safaricom pays out USD three million to Ethio telecom each year for infrastructure rental.

Still, the presentation this week indicates that Safaricom is making steady progress in Ethiopia.

The operator has managed to register 11.1 million subscribers since it rolled out its network in late 2022.