Safaricom Ethiopia added $193 million of financing in the six months to September 30, with borrowing supplying $110 million and equity another $83 million, according to Safaricom’s November 5 results. The funding mix reflects a shift toward debt after shareholders financed much of the operator’s early expansion.
The company sells mobile data and voice services in Ethiopia and offers M-PESA for money transfers and payments. Its customer base active over a 90-day period reached 15.4 million at September’s end, up 38.4% from a year earlier, according to the results.
Cumulative funding reached about $2.84 billion, including $474 million of debt. Business Daily reported that new borrowing helped settle previously deferred vendor bills and finance ongoing operations. Safaricom’s ownership edged down to 54.09% from 54.17% in March as its consortium partners also contributed capital.
The Ethiopian business reduced its first-half EBITDA loss by 96.5% from a year earlier, although it continued to report operating and net losses. Group chief executive Peter Ndegwa expects EBITDA break-even by March 2027, Khusoko reported. On the November 5 investor call, he said the company was concentrating on getting more use from its existing network.
Pricing remains a constraint. Ndegwa told investors that regulatory action to bring prices closer to the cost of providing service had moved more slowly than expected. Safaricom was seeking further support from the regulator.