Kenya: Safaricom’s M-PESA to Compete with Ethio Telecom’s Telebirr as it Plans Entry into Ethiopia

Safaricom, the Kenyan telecommunications giant, made its official entry into Ethiopia in 2022, but its highly lucrative mobile money service, M-PESA, is yet to be launched in the market. As Safaricom prepares to introduce M-PESA to its 4-million customer base in Ethiopia, it faces tough competition from Ethio Telecom’s Telebirr, which has already established a strong presence with 34.3 million subscribers. Both companies are vying to appeal to Ethiopia’s mobile money users.

M-PESA’s Success in Kenya:

M-PESA has been a resounding success in its home country, Kenya, since its launch in 2007. It has attracted millions of users and generated billions in revenue for Safaricom. The platform has sealed strategic partnerships in the financial space and expanded its offerings to include various services like loan and savings products, overdraft facilities, and a service tailored for teens. M-PESA’s impressive performance has led to significant revenue growth for Safaricom, with the mobile financial service being the primary revenue generator, accounting for nearly 40% of the company’s service revenue.

Telebirr’s Emergence in Ethiopia:

In contrast, Ethiopia’s digital financial landscape has witnessed a transformation with the introduction of Telebirr, a mobile money product offered by state-owned Ethio Telecom. Telebirr was launched in August 2021 in collaboration with Dashen Bank and has gained immense popularity, amassing 34.3 million subscribers and facilitating transactions worth over $12.3 billion. The product covers various financial services, including microloans and micro-savings. Telebirr has developed a robust network of service centers and agents, offering convenience and versatility to users.

The Battle for Digital Financial Supremacy:

As Safaricom’s M-PESA gears up for launch in Ethiopia, it faces stiff competition from Telebirr, which has quickly established itself in the Ethiopian financial market. While M-PESA boasts a proven track record in Kenya, Telebirr’s early success in Ethiopia cannot be ignored. As both services continue to evolve and expand their offerings, the competition for digital financial supremacy in Ethiopia is set to intensify. Only time will tell which platform emerges as the preferred choice for Ethiopians seeking financial inclusion and digital financial services.