Safaricom Ethiopia has raised concerns over the current pricing structure of mobile data services, warning that selling data below cost is unsustainable and threatens the long-term viability of the telecom sector in the country. The company highlighted that Ethiopia’s average mobile data prices are approximately three times lower than the African average, a disparity that, while driving rapid customer growth, poses serious challenges for future investment and infrastructure expansion.
Wim Vanhelleputte, CEO of Safaricom Ethiopia, emphasized the urgent need for “price rationalization,” particularly regarding heavily discounted large data packages. He explained that while a single gigabyte of data costs about 35 birr, purchasing a 200-gigabyte package reduces the price per gigabyte by six times, resulting in discounts of 80 to 90 percent. This pricing imbalance, Vanhelleputte noted, is unfair to customers who buy smaller data packages and undermines the company’s ability to generate profits necessary for expanding network infrastructure.
Safaricom Ethiopia estimates that the telecom industry requires an additional investment of 500 billion birr over the next three years to significantly enhance network coverage and quality. Such investment would be difficult to sustain without adjustments to the current pricing model.
Despite these challenges, Safaricom recently celebrated a major milestone, announcing that it has reached 10 million active customers within a 90-day period—an impressive feat achieved less than four years after receiving its operating license. The company likened this customer base to the population size of Belgium, underscoring the rapid adoption of its services.
Since its market entry, Safaricom has invested over 300 billion birr (more than US$2.5 billion) in infrastructure development. The company currently operates more than 3,000 telecom towers, covering over half of Ethiopia’s population. With an average daily addition of 30,000 new customers, Safaricom attributes its growth to customer confidence in its fast and reliable mobile and voice services.
Data usage among Safaricom customers is notably high, with nearly 75 percent of users accessing data services monthly and consuming an average of over 6 gigabytes each—more than 50 percent above the African continental average.
The company employs over 900 staff members, 97 percent of whom are Ethiopian nationals. This local workforce is central to Safaricom’s commitment to building a telecom ecosystem “by Ethiopians for Ethiopia.”
Wim Vanhelleputte expressed the company’s goal to achieve financial profitability within the next 6 to 12 months. Reaching this milestone would enable Safaricom Ethiopia to allocate future funds primarily toward network expansion rather than covering operational start-up costs.
Safaricom plans to double its network footprint over the next three years, increasing the number of live towers from 3,100 to more than 6,000 by December 2028. This expansion aims to extend internet, voice, and financial services coverage to 80 to 90 percent of the population, including both urban centers and rural areas.
The company acknowledged the initial challenges faced in navigating Ethiopia’s newly liberalized telecom market but stressed that healthy competition benefits the industry and consumers alike. Vanhelleputte remarked, “Competition is not a zero-sum game. In a market economy, it’s about growing the market.” He highlighted the complementary roles of Safaricom and Ethio Telecom in expanding customer numbers and overall market size.
Addressing concerns about network availability in conflict-affected regions, Safaricom noted improvements in security over the past 6 to 12 months. The company has launched services in areas such as Dessie and Kombolcha and plans to expand coverage to Gondar and Bahir Dar in the near future.
