Positive news for Ethiopia’s mobile duopoly

Details: Vaughan O'Grady; Category: Operators; 12 May 2025; 4680 views

The two competitors in the Ethiopian mobile communications duopoly can both claim to have inspired positive headlines in recent days, with Ethio Telecom announcing a major new e-commerce service launch and Safaricom Ethiopia highlighting improved financial results.

Ethio Telecom has announced the launch of Zemen GEBEYA, a digital marketplace designed, the company says, to transform the country’s commercial practices and serve as an inclusive platform connecting product and service providers – particularly micro, small and medium enterprises (MSMEs) – with consumers.

Offered to customers as a mini app integrated within the (mobile money service) telebirr SuperApp, Zemen GEBEYA comprises a merchants’ portal and mobile application, a consumers’ mobile application, a logistics management system, a dispatcher mobile application, and a system administration portal.

Ethio Telecom claims the new marketplace can contribute to increased economic activity, job creation, local production and overall GDP growth, bridging the digital divide by providing a platform accessible to users across urban, semi-urban and rural communities.

It also suggests that the marketplace will streamline transactions, minimise intermediaries, lower overheads (compared to maintaining physical retail spaces), unlock more efficient supply chains, accelerate price discovery, and optimise market transparency.

In addition, the new service promises data-driven insights, direct customer engagement, improved inventory management and secure and convenient ways to receive payments.

However, it’s too early to predict the success of the venture: Ethio Telecom is still at the stage of inviting companies to partner with Zemen GEBEYA.

Meanwhile, Reuters reports that Kenya’s Safaricom has suggested that its earnings could surge as much as 50% this financial year based on projections that losses for its operation in Ethiopia would fall steeply.

As Safaricom says, there have been security, inflation and currency challenges in Ethiopia, but it remains bullish that the country will power future growth for Safaricom Ethiopia.

Chief Executive Officer Peter Ndegwa is quoted as saying: "We are pleased with our performance in FY25 despite the various challenges that faced the operating environment including economic disruptions, slowdown in GDP growth and impact of foreign exchange regime reforms in Ethiopia.”

This year, Safaricom expects negative earnings before interest and taxes, (EBIT) of between ETB23 billion and ETB26 billion (US$171.7 million and US$194.1) million in Ethiopia. It’s a large amount but a clear improvement on negative EBIT of about ETB61 billion (US$455.4 million) last year.