Safaricom’s Earnings Surge: A Gritty Tale of Telecom Grit and Currency Pitfalls
East Africa’s telecom heavyweight, Safaricom, just punched through a financial milestone with a 31.9% EBIT surge—like a prizefighter shrugging off a body blow. But don’t pop the champagne yet. Behind those glossy numbers lurks a noir-worthy plot: currency chaos in Ethiopia, startup losses thicker than Nairobi traffic, and a mobile money empire fighting to keep its crown. This ain’t your boardroom PowerPoint story. Grab a cup of instant coffee (we’re budget-conscious gumshoes here), and let’s dissect how Safaricom’s playing 4D chess in a market where the house always wins.
The Ethiopia Gambit: High Stakes, Higher Headaches
Safaricom stormed into Ethiopia in 2022 like a cowboy in a spaghetti western—bold, brash, and ready to carve up a virgin market. The government had just cracked open its telecom monopoly, and Safaricom, backed by Vodacom and Vodafone, bet big. Fast forward two years, and the terrain’s rougher than a Nairobi pothole. The Ethiopian birr’s nosedive sliced 17% off half-year earnings, trimming profits to a lean Ksh 28.1 billion.
But here’s the twist: despite inflation biting harder than a hyena and security risks thicker than fog, Safaricom’s wrangled 7 million users—4.1 million active. That’s not luck; that’s hustle. The company’s learning curve? Steeper than Mount Kenya, but they’re scaling it. Mobile money and data are their oxygen, and Ethiopia’s starving for both.
Financial Jiu-Jitsu: Revenue Up, Profits Down
The numbers tell a tale of two cities. Revenue jumped 15.07% to Ksh 189.42 billion ($1.47 billion) in H1 2025, but profits got sucker-punched by Ethiopia’s currency woes and Kenya’s economic hangover. Full-year earnings? Revised down to $731–778 million, thanks to the birr’s freefall.
Yet, there’s a silver lining sharper than a Gillette blade: 2024 profits still grew 11% to $540 million (KES 69.8 billion). How? By staunching Ethiopia’s bleeding and milking M-Pesa’s cash cow. That platform processed $836.5 billion in 2022—a 22% spike. In a continent where cash is king, Safaricom’s playing the palace guard.
The M-Pesa Moonshot and Startup Alley
Safaricom ain’t resting on its laurels. Their Accelerator Program, teaming up with M-PESA Africa and Sumitomo, is betting on fintech and content startups like a degenerate at the racetrack. Why? Because innovation’s their bulletproof vest against market shocks.
And let’s talk M-Pesa. It’s not just an app; it’s a financial revolution. From street vendors to CEOs, everyone’s hooked. Safaricom’s doubling down, because in Africa, if you control the money pipes, you control the game.
The Long Game: Ethiopia or Bust
Safaricom’s betting the farm on Ethiopia turning profitable by 2025. Risky? Sure. But with the Ethiopian Securities Exchange (ESX) launching, the playing field’s leveling. This ain’t just about telecoms—it’s about anchoring Africa’s next economic tiger.
Case Closed, Folks
Safaricom’s story isn’t a fairy tale; it’s a street fight. Currency swings? Check. Political landmines? Check. But here’s the kicker: they’re still standing, still swinging. That EBIT surge isn’t just numbers—it’s proof that in the telecom trenches, grit beats glamour every time. Now, about that hyperspeed Chevy… maybe next quarter.
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