Safaricom PLC is set for a major spread of wings with an entry in one of Africa’s most populous country, Ethiopia according to information obtained and published by Reuters.
According to the paper, the talks between Safaricom and the government of Ethiopia are already in advanced stages and upon conclusion, M-PESA might set foot in Ethiopia for the first time.
According to the sources, the state-controlled Ethio Telecom is set to run the M-PESA services with Safaricom being paid between 10 and 15 percent of annual revenue.
The New PM
Since Ethiopia got the new Prime Minister, Mr. Aby Ahmed, a lot of developmental transformation has been going on in the country.
Within 100 days in office, the PM had already managed to end the border wars between Ethiopia and Eritrea that had lasted for over two decades. This also led to the President of Eritrea visiting Ethiopia for the first time in 20 years.
He has also managed to end the political turmoil in his country that had been set on political demonstrations. He has released political prisoners, restored the internet and allowed the media to operate freely.
What Safaricom Stands to Benefit
If Safaricom’s deal manages to sail through, the company is set to tap into the more than 100 million people in Ethiopia and who are likely to embrace the mobile banking system.
The country is also opening up to businesses and developments and M-PESA might take this advantage by introducing the SME loan system, like the M-SHWARI in Kenya.
M-PESA in Kenya
M-PESA now has more than 28 million customers in Kenya. Started in 2007, the platform has evolved from just been a transactional platform to being a banking platform too, giving loans through M-SWARI and also helping people to save.
For 10 years, Kenya has been ahead of other 20 nations in financial inclusion with M-PESA and mobile money in general receiving praises for having facilitated this.