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Safaricom Ethiopia Drives Reduced Mobile Data Costs in Ethiopia
Since the launch of Safaricom Ethiopia, the cost of mobile data services in Ethiopia has seen a significant decrease of up to 70%. British International Investment (BII), a shareholder in Safaricom Ethiopia, revealed that this UK-backed mobile network operator has played a crucial role in providing millions of Ethiopians access to superfast 4G mobile internet services throughout the country.
In collaboration with Safaricom Ethiopia, BII commissioned a report titled “Impact of Investment in the Ethiopian Telecoms Market – The Story So Far” to assess the changes and progress made in the Ethiopian telecoms market since the liberalization process that began in 2019.
According to a statement from BII cited by Capital, the launch of Safaricom Ethiopia in 2022 has led to a considerable reduction in mobile data service costs, benefitting consumers by up to 70%.
As of June 30, 2024, Safaricom Ethiopia had garnered 4.4 million customers and had established nearly 3,000 2G, 3G, and 4G network towers, covering 44% of the population. The company has also enhanced 4G service availability in the country, signifying growth and development in the telecom sector.
A report by Analysys Mason, commissioned by BII and Safaricom Ethiopia, highlights the competitive impact Safaricom’s entry has had on the Ethiopian telecom sector, society, and the economy, with focus on the benefits of increased investments in digital infrastructure and services. The report illustrates reduced prices for mobile and data packages, improved services, and potential socioeconomic advantages resulting from enhanced digital connectivity.
With Safaricom Ethiopia’s establishment, 81% of Ethiopian households now have access to a mobile phone, showcasing the positive influence of improved telecom services on the population.
Safaricom Ethiopia, founded with investments from a consortium that included BII, IFC, Safaricom, Sumitomo Corporation, Vodacom, and Vodafone Group, was granted Ethiopia’s first mobile network license to a private entity back in 2021. The company’s entry has proven to be a game-changer in the Ethiopian telecom market, driving down costs, improving connectivity, and enriching the digital landscape for millions of Ethiopians.
