Safaricom Ethiopia, a major telecom operator, has encountered a significant setback in its operations as it has been forced to shut down its network sites in the Amhara region, Ethiopia’s second-largest province.
This development comes in the wake of a state of emergency declaration by the Federal Government on August 4, prompted by clashes between the military and the Fano militia.
The challenges posed by Ethiopia’s complex market dynamics are evident, as Safaricom Ethiopia Chairman, Michael Joseph, acknowledges the paramount importance of the country’s stability for conducting business.
According to the Business Daily, the ongoing state of emergency compelled the telco to halt its operations in the Amhara region, resulting in the closure of a portion of its 1,272 network sites. This setback has disrupted Safaricom’s ambitious expansion plans in the expansive Ethiopian market, where it aims to establish 3,000 network sites by the end of 2024.
In its previous filings, Safaricom Ethiopia had revealed its network infrastructure, encompassing 875 self-built network sites and an additional 397 sites shared with other operators, covering 22 cities across the nation.
Read Also: Safaricom 5G Users to Enjoy Free Internet Services for a Month
Despite the challenges, the subsidiary remained resolute in its commitment to introduce mobile money services in Ethiopia, a plan that had received a green light from the Federal Government. The investment license for this venture cost Safaricom $150 million, with a payment of $84 million already made.
Although the setbacks have been notable, Safaricom Ethiopia’s determination to progress with its mobile money initiative remains unwavering. The company remains on course to introduce this service to the Ethiopian market in the near future.
In spite of the obstacles, Safaricom Ethiopia is optimistic about achieving its target of 10 million 90-day active consumers by 2024, a substantial increase from the current 2.1 million.
Subscribe to our YouTube channel Switch TV
In financial terms, Safaricom Ethiopia reported a loss of Sh21.7 billion in the reporting period ending March 2023. The company’s resolve to navigate through challenges and tap into Ethiopia’s immense potential is evident, even in the face of the recent operational setbacks caused by the state of emergency in the Amhara region.
Safaricom first launched its operations in Ethiopia in October 2022 by rolling out its 2G,3G and 4G networks in the country’s 11 cities.
