Hola,
Victoria from Techpoint here,
Here’s what I’ve got for you today:
- Ethio Telecom launches eCommerce platform Zemen GEBEYA
- Kenya and Ethiopia push Safaricom to $540M gain surge
- Safaricom joins the orbital race to take on Starlink in Kenya
Ethio Telecom launches eCommerce platform Zemen GEBEYA
Ethio Telecom just launched Zemen GEBEYA, a new eCommerce platform built to connect Ethiopian businesses and consumers in one digital marketplace. It’s the latest in the state-owned telco’s push to “modernise” Ethiopia’s economy and grab a bigger slice of the country’s growing digital appetite.
So why is this a big deal? For one, it gives Micro, Small, and Medium Enterprises (MSMEs) a shot at a wider market, minus the middlemen. The platform, backed by fast Internet, cloud infrastructure, and the popular telebirr payment system, ticks several boxes in the government’s “Digital Ethiopia” game plan.
However, Ethio Telecom’s aggressive diversification raises questions about its strategic focus. While the expansion into eCommerce demonstrates ambition, there’s a risk of overextension. Managing multiple ventures simultaneously could strain resources and divert attention from the company’s core telecommunications services, potentially impacting service quality and customer satisfaction.
But that’s not all Ethio Telecom’s been up to. Over the weekend, it expanded its 5G coverage to more cities: Wolaita Sodo, Hosaena, Arba Minch, and nearby areas, adding to earlier rollouts in Addis Ababa, Dire Dawa, Bahir Dar, and others. That’s a total of 10 cities (and counting) now getting ultra-fast Internet.
It’s starting to look like Ethio Telecom wants to be everything at once — telco, fintech, logistics player, and now eCommerce enabler. Whether it’s helping MSMEs sell nationwide, streaming online education, or powering cloud gaming, the company is touching nearly every aspect of Ethiopia’s digital life.
At the Zemen GEBEYA launch, CEO Frehiwot Tamiru said the move was driven by demand: more smartphones, more digital ID users, more people online. But it also sounds like a race to stay ahead as competitors like Safaricom dig deeper into the Ethiopian market.
With tools like a merchant portal, consumer app, logistics management system, and more, Zemen GEBEYA is more than just a shopping app. And paired with growing 5G coverage, Ethio Telecom is placing itself at the centre of Ethiopia’s digital transformation: one transaction, stream, and smartphone at a time.
Kenya and Ethiopia push Safaricom to $540M gain surge
Safaricom is back in pr0fit mode. The telco giant posted an 11% jump in net gain to $540 million for the fiscal year ending March 2025, marking a strong comeback after two rough years. The big turnaround? A solid home base in Kenya and, surprisingly, a major improvement in its Ethiopia business.
Group revenue hit a record $3 billion, up from $2.9 billion in the previous year. Mobile data and M-Pesa continue to do the heavy lifting. M-Pesa alone made up 44.2% of Kenya’s service revenue, cementing its place as the heart of Safaricom’s operations. The customer base also grew by 16%, reaching 57.1 million users.
The real plot twist came from Ethiopia. Losses in the new market fell sharply to $165.7 million, compared to a brutal $472.4 million the previous year. That’s a massive drop and a sign that things are stabilising. Ethiopia now contributes nearly 10% of group revenue, and the customer base has more than doubled to 8.8 million.
M-Pesa’s growth in Ethiopia is also picking up steam. It now has 2.4 million active users moving over $160 million in transactions. Safaricom even launched cross-border remittance from Kenya to Ethiopia last year, tapping into the growing appetite for digital finance in the Horn of Africa.
CEO Peter Ndegwa is feeling confident. He’s projecting up to a 50% increase in earnings before interest and taxes (EBIT) for the next fiscal year. Ethiopia is expected to break even by 2027. Ambitious, but not far-fetched if current momentum holds. Despite the hurdles, including currency dips and economic instability, Safaricom seems to be playing the long game and playing it well.
Compared to the previous year, when losses in Ethiopia weighed down the company’s performance and investor confidence wavered, this is a major turnaround. I think we can say Safaricom’s strategy of patient investment, local partnerships, and digital-first offerings is starting to bear fruit.
Safaricom joins the orbital race to take on Starlink in Kenya
Safaricom is making moves to take on Starlink’s growing presence in Kenya. The telco giant now has its eyes on partnering with satellite broadband companies to reach more remote areas—clearly not keen on letting Elon Musk run the show unchallenged.
During its latest earnings call, Safaricom CEO Peter Ndegwa said the company is actively exploring collaborations with satellite Internet firms. The goal? To boost broadband coverage in parts of Kenya where fibre and traditional mobile infrastructure just haven’t cut it.
It’s not hard to see why this is urgent. In just three months, Starlink more than doubled its market share in Kenya to 1.1%, adding over 8,700 users. That’s faster than anything it pulled off in the previous year, according to data from the Fintech Association of Kenya.
Safaricom isn’t just relying on partnerships, though; it’s also pushing for regulation. The company has asked the Communications Authority of Kenya (CA) to require satellite Internet players like Starlink to team up with local mobile operators. The idea is to encourage infrastructure investment and create jobs.
This isn’t Safaricom’s first satellite rodeo. It previously announced plans to launch satellite Internet with AST SpaceMobile in 2023. Now, with talks ongoing between Safaricom and Starlink itself, it looks like Plan A may have fizzled, and the company is exploring new options.
One thing is clear: the broadband race in Kenya is heating up. Safaricom is upgrading its home Internet packages, while Starlink’s offering continues to appeal to users in rural and underserved regions. If the competition continues like this, Kenyan consumers may just come out on top.
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Have a productive week!
Victoria Fakiya for Techpoint Africa.
