Mobile money: Safaricom accuses Ethio Telecom of hindering its expansion
December 9th 2025
The incumbent operator launched its mobile money platform in 2021. Authorities then temporarily closed the market to competition to allow it to establish itself. Safaricom’s M-Pesa was launched in 2023.
M-Pesa Ethiopia, the digital financial services arm of Safaricom Ethiopia, announced last week that the incumbent operator Ethio Telecom is restricting access to the new M-Pesa Lehulum app. This app is intended to allow all Ethiopians to use M-Pesa, regardless of their telecommunications network.
In a statement released on Friday, December 5, M-Pesa explained that the application “is currently unavailable on smartphones using mobile data services managed by Ethio Telecom, preventing our customers from logging in, making transactions, or withdrawing their funds.” However, M-Pesa Ethiopia clarified that this solution, launched on December 1, is fully approved by the market regulator, the National Bank of Ethiopia (NBE), as well as by the Information Network Security Administration (INSA).
“M-PESA LeHulum brings together the essential services that people rely on daily: sending and receiving money, paying merchants and bills, buying mobile credit, making QR code payments, and accessing the Errif Be M-PESA overdraft. It also enables seamless transfers with banks and other wallets through the integration of ETHSwitch. It represents a major step forward in creating a more connected and accessible financial ecosystem for everyone ,” the telecom operator stated.
The launch of this application is part of Safaricom Ethiopia’s ongoing efforts to strengthen its market presence since commencing operations in August 2023. For example, on October 28, M-Pesa joined the national payment network EthSwitch. In May 2025, the operator announced the upcoming launch of savings and lending services through its mobile platform. In October 2024, it expanded its M-Pesa Global service to Ethiopia, paving the way for money transfers between Kenya and Ethiopia. The platform is also partnering with government authorities to digitize payments in the country.
As a reminder, Safaricom reported at the end of September 2025 a total of 3.5 million active subscribers on M-Pesa in Ethiopia within 90 days. In the first half of the operator’s 2026 fiscal year, the platform recorded 84.7 million transactions for a total value of 12.3 billion Kenyan shillings (US$95.16 million). Meanwhile, Ethio Telecom aims for 75 million Telebirr subscribers by 2028, compared to 54.8 million currently, and an estimated transaction value of 21.3 trillion birr (approximately US$137.4 billion).
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