Safaricom Plc has reported a 2.1 percent growth in net income for the first half of 2023, reaching Ksh.34.2 billion. This growth is attributed to early profits from its investments in Ethiopia, marking a significant milestone for the company.
Despite the economic challenges faced by consumers, Safaricom’s Kenyan business remained robust. The company’s CEO, Peter Ndegwa, credited the resilience of the company during this period.
The Kenyan business witnessed a remarkable 10.9 percent growth in revenue, totaling Ksh.41.6 billion during the first half of the year.
“These results reflect a strong performance in Kenya and strong commercial momentum in Ethiopia,” said Ndegwa.
Service revenues also saw substantial growth, up by 9.3 percent to Ksh.158.3 billion. This increase was primarily driven by higher M-Pesa and data revenues.
M-Pesa revenues surged by 16.5 percent to Ksh.66.2 billion, with the implementation of consumer and business payments playing a significant role.
Expansion into Ethiopia
Safaricom’s expansion into Ethiopia proved to be particularly fruitful, posting a Ksh.43.7 billion transaction value. This was mainly attributed to the surge in M-Pesa customers.
Since the launch of M-PESA in Ethiopia in August, Safaricom has registered 1.2 million customers.
This expansion was made possible after Safaricom received the Payment Instrument Issuer License from the National Bank of Ethiopia. The move is a strategic step as Safaricom endeavors to broaden its offerings in one of Africa’s most populous countries.
In addition to the growing customer base, Safaricom has successfully onboarded over 23,000 M-Pesa agents and 12,000 merchants in Ethiopia, further solidifying its position in the market.
This accomplishment underlines Safaricom’s commitment to providing innovative financial solutions in the region. The company’s performance in the first half of 2023 shows a promising future for its continued growth and expansion.