Safaricom Ethiopia Shuts Down its Sites in Amhara

Safaricom Ethiopia has shut down its operations in Amhara, the country’s second-largest province after the Federal Government announced a state of emergency, the latest setback to the telco’s activities in the populous country.

Following violence between the military and the Fano militia on August 4, the Federal Government announced a state of emergency.

“Ethiopia is indeed a tough market. The most important thing is the stability of the country and the ability to operate right across Ethiopia,” said Michael Joseph, the Safaricom Ethiopia chairperson.

“Today as you know there is a state of emergency and we cannot go to the Amhara region and had to shut our sites down there. All these are challenges that we have to deal with,” he said.

The listed telecoms firm has not announced how many of its 1,272 sites have been affected by the shutdown, but Mr. Joseph stated that the development has slowed the company’s expanding momentum in the enormous country.

Safaricom intends to have 3,000 network sites in Ethiopia by the end of 2024.

According to the most recent filings, Safaricom Ethiopia had 875 self-built network sites and 397 collocated sites, covering 22 cities in the country.

The subsidiary had 2.1 million 90-day active clients in 2018, with a target of 10 million by 2024.

Despite the obstacles, the telco maintains its intention of launching its mobile money service in the country in the near future and remains on track.

The Federal Government of Ethiopia gave Safaricom a license for mobile money services in May, with the investment licence costing US$150.0 million, of which Safaricom paid US$84.0 million.

Safaricom Ethiopia reported a deficit of Sh21.7 billion for the fiscal year ending March 2023.