Both of Ethiopia’s telecom operators, Ethio Telecom and Safaricom Ethiopia, have announced tariff increases, citing challenging macroeconomic conditions and rising investment requirements as the primary drivers behind the decision.
Ethio Telecom described its move as a moderate adjustment, stating that the change is necessary to ensure service continuity, maintain quality, and sustainably support the continued expansion of the country’s telecommunications and digital infrastructure.
Safaricom Ethiopia, meanwhile, announced an average 44 per cent increase in mobile data charges. ITWeb Africa described the move as the company’s most aggressive pricing adjustment since it entered the Ethiopian market two years ago.
The price increases are widely seen as a response to the depreciation of the Ethiopian birr following the government’s decision to allow the currency to float freely in mid-2024. This shift has significantly increased costs for operators with substantial foreign currency exposure.
Safaricom Ethiopia has been particularly affected, with an estimated 85 per cent of its capital expenditure and around 50 per cent of its operating costs denominated in foreign currency, primarily US dollars, while revenues are largely generated in local currency. Both operators have invested heavily in network infrastructure, placing additional pressure on foreign exchange requirements.
Despite these challenges, Safaricom reported in November that losses from its Ethiopian operations had narrowed, alongside continued growth in mobile money and data services. The company is targeting a break-even point for its Ethiopian business by March 2027.
At group level, Safaricom recorded a strong turnaround, reporting net earnings of US$225 million for the six months to September 2025, supported mainly by performance in its core Kenyan market.
Safaricom Ethiopia now serves approximately 11.1 million customers, a notable achievement for a recent market entrant, while Ethio Telecom’s subscriber base is estimated at around 86 million.
