Safaricom Ethiopia has raised the cost of data in its push to break even and grow earnings of the Kenyan unit listed at the Nairobi bourse.
Mobile data packages have soared by an average of 44 percent, according to BirrMetrics reporting, an Addis Ababa-based media outlet, with daily bundles recording the steepest increase.
A gigabyte of data purchased daily is now priced at 35 ETB (Sh29) while a monthly purchase of 10 gigabytes now costs 500 ETB (Sh414).
The operator signalled the data pricing adjustment against the backdrop of currency depreciation, which requires it to raise its prices to remain commercially viable.
“To continue delivering reliable and high-quality mobile data services, Safaricom Ethiopia has rationalised prices for its data bundle packages in response to rising operational and investment costs,” Safaricom Ethiopia said in a statement last week.
Safaricom Ethiopia has not adjusted its voice and SMS tariffs.
Safaricom Plc, which has a 53.37 percent controlling stake in Safaricom Ethiopia, earlier indicated that a tariff increase would be crucial to help it turn profits.
The Kenyan business reported loss in Ethiopia dropped by 59 percent compared to the first half of the previous financial year, which was heavily impacted by a depreciation of the birr.
The loss in Ethiopia that is attributed to Safaricom dropped to Sh15.2 billion from Sh19.4 billion in the same period a year earlier, translating to a gain of Sh4.2 billion.
Safaricom launched in Ethiopia in 2022 as the Addis government opened up the tightly-controlled economy to foreigners and is hoping its presence in Africa's second most populous country will power future growth.
The push for higher service charges has been in the wake of a damning World Bank report that deemed telecom investments in the country were unsustainable as low tariff rates depress revenues.
Depreciation of Ethiopian Birr has worsened already low tariff rates, which leave Safaricom in an increasingly deeper hole as it prices its investments and expected revenues in US dollars.
“We remain concerned about the market repair as one cannot sustain a business made from a dollar investment in the country,” Safaricom Plc chief finance officer Dilip Pal told this publication in an October interview.
“The return that you are expecting with the depreciation of the birr from 57 units to the dollar in July 2024 to 146 means you need price correction. The price levels are too low and telecoms like us are selling their services, be it data or voice, below cost, and that must change.”
A World Bank report commissioned by the Ethiopian Communications Authority (ECA) established that the country’s low telecoms tariffs have been a disincentive to investments in the industry as potential investors seek to avoid losses.
The global lender said Ethiopia stands to lose out on advancing its telecoms sector if firms fail to generate enough revenues to justify investments.
“Ethiopia’s average revenue per user (APRU) remains one of the lowest in Africa at around $1 (Sh128.99) per month, reducing scope for fresh network investment,” the World Bank report said.
“Compared to other African countries, Ethiopia still lags in 4G coverage, broadband speed and fixed internet penetration, particularly in rural and remote areas, though the gap has narrowed considerably since 2018. These gaps will not be bridged without fresh investments and currently, neither operator is in a position to commit to this.”
The ECA has made reforms to increase broadband access and reduce prices, including the 2024 reduction of mobile termination rates (MTRs) but challenges have persisted, including biased rules favouring the state-owned EthioTel.
Safaricom Ethiopia registered revenues of Sh6.18 billion from voice, messaging and data in six months to September 2025 with data generating the bulk of receipts at Sh4.1 billion.
The operator noted that it was easier to drive the usage of data over voice, given that more cell towers would be required to connect voice customers.
Safaricom’s Ethiopia expansion has shown promise from increased network usage with the number of 90-day active customers rising by 83.7 percent from last year to 11.15 million as of September 2025.
Active voice customers stand at 9.57 million, data customers are at 8.87 million while M-Pesa customers sit at a lower 3.35 million.
