Safaricom is planning to expand it’s popular M-Pesa to Ethiopia, the dominant telecom in Kenya will allow Ethio telecom, to carry the service, and Safaricom will get a share the profits. Safaricom is in advanced talks with the Ethiopian government to introduce M-Pesa mobile money service, a significant step towards establishing a toe-hold in the market of over 100 million people.
MPesa has not only created employment opportunities in Kenya but also transformed Kenya’s economy. Revenue from M-Pesa in the financial year 2017 was 63 billion shillings, a 14% increase on the previous year.
Launched in Kenya in 2007, MPesa now has over 27 million active users in Kenya and has become a significant driver of profit growth for the giant telecoms provider in Kenya, as revenue from traditional voice and text services has flattened off due to the increase in internet calls.
M-Pesa has over time evolved from an essential money transfer service to a financial platform offering savings, loans and insurance products in conjunction with local lenders.
Britain’s Vodafone, Safaricom’s parent company, will license the use of the M-Pesa trade name to an Ethiopia-based bank while Safaricom will host the servers in Kenya.
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