Both of Ethiopia’s mobile network operators, Ethio Telecom and Safaricom Ethiopia, have announced tariff increases, citing macroeconomic pressures, currency depreciation, and rising investment requirements to maintain network expansion and service quality.
Ethio Telecom said it has implemented a moderate tariff adjustment, describing the move as necessary to ensure service continuity and support the sustainable expansion of telecommunications and digital infrastructure nationwide. The state-owned operator framed the increase as part of its long-term infrastructure and service quality strategy.
Safaricom Ethiopia, meanwhile, announced an average 44 percent increase in mobile data charges, marking its most aggressive pricing adjustment since entering the Ethiopian market two years ago. Industry observers have linked the move to heightened cost pressures following Ethiopia’s decision to allow the birr to float freely in mid-2024, which led to significant currency depreciation.
Reports indicate Safaricom Ethiopia has been particularly exposed to foreign exchange risk, with around 85 percent of its capital expenditure and roughly half of its operating costs denominated in foreign currency, mainly US dollars, while revenues are generated in local currency. Both operators have made substantial infrastructure investments, placing further strain on foreign currency resources.
Despite the challenges, Safaricom’s parent company reported in November that losses in its Ethiopian operations had narrowed, alongside continued growth in mobile money and data services. The company aims for its Ethiopian business to break even by March 2027. At group level, Safaricom reported a strong turnaround, with net earnings reaching $225 million in the six months to September 2025.
Safaricom Ethiopia’s subscriber base has grown to approximately 11.1 million users, a notable achievement for a relatively new entrant, while Ethio Telecom continues to dominate the market with an estimated 86 million subscribers.
