Safaricom Ethiopia, the country’s second-largest telecom operator, has announced sweeping adjustments to its mobile data pricing, triggering widespread customer complaints over what many describe as steep and unjustified increases.
Effective December 23, 2025, the company revised its data packages—raising prices by between 20 and 82 percent across most plans—while simultaneously reducing the data volume on several key packages. According to details obtained by Capital, the change affects daily, weekly, and monthly plans, as well as unlimited and long-term packages.
Under the new structure, the weekly 10 GB data bundle, previously sold for 250 birr, has been reduced to 5.5 GB, effectively doubling the cost per gigabyte. Daily data packages saw price increases of between 50 and 67 percent, with the popular 150 MB plan cut to 100 MB while retaining the same 5 birr price tag. The 100 birr weekly package now offers 2 GB instead of 3 GB—a 50 percent increase in the effective price.
Unlimited data packages have risen by 20 to 25 percent, while quarterly and semi-annual plans jumped by 21 percent to reach 4,250 birr and 8,500 birr, respectively.
In a statement issued on Thursday, Safaricom Ethiopia said the adjustment was necessary due to mounting operational and investment costs, as well as the devaluation of the birr and rising equipment expenses linked to global supply challenges.
“This adjustment has been found necessary to continue our efforts to provide a reliable and high-quality connectivity experience to our 12 million customers,” the company said, emphasizing that the changes were part of a long-planned restructuring.
Chief Executive Officer Wim Vanhelleputte previously signaled the move in mid-2025, noting that Safaricom’s data services had been priced below cost, threatening the telecom’s long-term viability. He indicated that Ethiopia’s mobile data prices were among the lowest in Africa—approximately three times lower than the continental average—making it difficult for new entrants to achieve profitability while expanding coverage.
Safaricom Ethiopia entered the market in 2022 as the first private operator to compete with state-owned Ethio Telecom after securing a license in 2021. The company has since invested over 300 billion birr (approximately USD 2.5 billion) and established more than 3,000 mobile sites, covering about half of the country’s population. Over the next three years, Safaricom estimates that it will require an additional USD 500 billion in capital to meet its network expansion goals.
The company’s leadership argues that the new pricing is vital to sustain those investments amid Ethiopia’s ongoing macroeconomic reforms and foreign exchange shortages, which have significantly increased the cost of imported telecom equipment. Without higher revenues, executives warn, critical network development could stagnate.
However, the price hike has sparked a torrent of backlash from users who say the move is anything but a minor “adjustment.” Many complain that slashing data volumes while raising fees will place additional pressure on households already strained by inflation.
“This is not an adjustment—it’s a drastic increase,” one long-time customer told Capital. “People relied on Safaricom because of its affordability. Now, even staying connected will become difficult for students, small traders, and ordinary users.”
The move could test the operator’s rapid growth trajectory. In less than three years, Safaricom captured 12 million subscribers by offering competitive pricing and aggressive promotional campaigns upon entering Ethiopia’s market. Analysts warn that steep price increases could slow this momentum as comparative affordability diminishes.
Despite the controversy, Safaricom’s financial strength appears well-backed. In September, Standard Bank—the largest financial institution in Africa—provided USD 138 million in financing to support Safaricom Ethiopia’s ongoing infrastructure investments. The company’s ownership structure is made up of a consortium led by Kenya’s Safaricom Plc, which holds a 55.7 percent stake. Other shareholders include Japan’s Sumitomo Corporation (27.2 percent), British International Investment (10.9 percent), South Africa’s Vodacom Group (6.2 percent), and the International Finance Corporation (IFC), a World Bank arm.
These partners have collectively pledged both technical expertise and financial backing to speed up digital infrastructure development in Ethiopia. Yet as customers voice frustration over rising prices, Safaricom faces a delicate balancing act between financial sustainability and public trust.
As one analyst put it, “Safaricom may be right about cost recovery—but in today’s economy, every birr counts for consumers. The challenge is not just connectivity, but affordability.”
