Safaricom raises stake in Ethiopian unit to 53pc

The partners also injected a further Sh12.6 billion ($98 million) capital into the subsidiary during the same period.

The change in the shareholding structure means Safaricom now has a greater capital contribution than its partners, giving it a higher stake in the business.

The partners have contributed additional funding to support business operations, primarily centred on network expansion.

The other shareholders in the Ethiopian business are Vodacom Group (5.93 percent), Sumitomo Corporation (24.02 percent), British International Investment (BII) (9.71 percent) and International Finance Corporation (IFC) (6.97 percent).

The shareholding of Sumitomo has been diluted slightly from 25.23 percent in March, while BII’s and IFC’s stake have come down from 10.11 percent and 7.25 percent respectively. Vodacom’s stake has edged up slightly from 5.74 percent in the six months.

“We put in money as a shareholder to later convert into equity. Total funding at the end of September 2025 stood at Sh319.5 billion ($2.473 billion). The shareholders injected an additional Sh12.6 billion ($98 million) in the period under review,” Safaricom's chief finance officer Dilip Pal said.

“We continue to assess the funding needs of Safaricom Ethiopia more regularly to ensure that the business is well funded.”

Funding for the venture includes Sh16.4 billion in local currency debt and Sh25.8 billion ($200 million) foreign currency debt from the IFC and Standard Bank.

The foreign currency borrowings doubled during the review period, rising from Sh12.9 billion ($100) million at the end of March.

Safaricom’s cumulative funding contribution to the business now stands at Sh146.8 billion ($1.136 billion).

Safaricom Ethiopia's expansion has seen a 9.9 percent annual growth in 2G/3G/4G base stations, reaching 3,306 at the end of September 2025, up from 3,008 a year prior.

The subsidiary reached 11.15 million 90-day active customers in the period, an increase of 83.7 percent over a year from 6.07 million previously.

The unit booked Sh6.18 billion in service revenues for the period, representing a growth of 136 percent.

Mobile data revenue stood at Sh4.12 billion, with voice and messaging at Sh1.3 billion and Sh74.2 million respectively.

Revenue from M-Pesa continues to lag behind other business lines at Sh8.7 million, having fallen by 45.6 percent.

Safaricom Ethiopia's bottom line improved during this period as its losses reduced from Sh19.4 billion to Sh15.2 billion.

The bulk of the subsidiary's losses were due to sharp currency depreciation for the Ethiopian birr, which increased finance costs on foreign currency debt.

The total average revenue per user of 90-day active customers stood at Sh102.70, but fell by 28.1 percent from Sh142.77 last year, a factor of the currency depreciation.

Safaricom expects its Ethiopian subsidiary to break even by the end of the 2027 financial year in March.

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