Ethiopia’s operators raise tariffs due to macroeconomic conditions

Details: Vaughan O'Grady; Category: Operators; 01 January 2026; 10498 views

Both of Ethiopia’s operators – Ethio Telecom and Safaricom – have announced tariff rises, citing current macroeconomic conditions as the main reason, alongside increased investment requirements for network expansion and service quality.

Ethio Telecom has implemented what has been described as a moderate adjustment to its tariffs, but its statement focuses heavily on the positives, saying: “The adjustment is essential to ensure continuity and quality of services, and to sustainably strengthen the ongoing expansion of telecommunications and digital infrastructure across the country.”

Safaricom Ethiopia has announced a 44% average rise in mobile data charges. The ITWeb Africa news service calls this the company's most aggressive pricing adjustment since entering the Ethiopian market two years ago.

Both price adjustments are being widely described as a response to the depreciation of the Ethiopian currency, following the government’s decision to allow the birr to float freely in mid-2024.

Reports suggest that Safaricom in particular may have suffered, as an estimated 85% of its capital expenditure and 50% of its operating costs have been denominated in foreign currency – mainly dollars. Its revenues, however, have come from the local currency. Both companies, but Safaricom in particular, have been investing heavily in infrastructure, which is likely to be a major drain on foreign currency resources.

That said, in November parent company Safaricom reported a narrower loss in its Ethiopian operations along with sustained growth in mobile money and data services. The aim for the Ethiopian business is apparently to break even by March 2027.

The overall Safaricom operation, including Kenya, reported a sharp turnaround in profitability, with group net earnings rising to US$225 million in the six months to September 2025.

Safaricom Ethiopia’s customer base now stands at around 11.1 million users, impressive for a relative newcomer, although Ethio Telecom can now boast an estimated 86 million subscribers.