Safaricom In Ethiopia: The Disruptor Turned Underdog
Safaricom’s entry into Kenya in 2000 revolutionized the country’s economy. Through a combination of strategic vision, political influence, and technological innovation, it achieved a dominant market position, with M-Pesa transforming financial transactions for individuals and businesses. However, two decades later, the company faces a vastly different landscape in Ethiopia, battling a system it once knew how to control.
# From Dominator to Challenger
Safaricom Ethiopia launched in 2022 with considerable enthusiasm. Capitalizing on its established reputation in Kenya, the company recognized the potential of Ethiopia’s large, underserved market of over 120 million people, coupled with the government’s commitment to telecom liberalization after years of state control. Yet, initial enthusiasm hasn’t translated to immediate market dominance. Ethio Telecom, the state-owned incumbent, maintains a strong hold. The World Bank’s 2025 Ethiopia Telecom Market Assessment highlights that despite liberalization efforts, the telecom reform is not yet complete, indicating ongoing challenges for new entrants like Safaricom as it navigates the existing market dynamics.
Safaricom’s experience in Ethiopia underscores the complexities of expanding into new markets, even with a proven track record. The company now finds itself in the unfamiliar position of an underdog, striving to gain ground against a well-established player within a partially reformed system.
Keywords
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