Learning how to play the challenger in Ethiopia

In Safaricom’s latest financial results, Safaricom Ethiopia’s start up losses reduced to KSh13.3 billion from KSh28.2 billion in a similar period last year.

Going into a new market was never going to be easy, and those from Safaricom who have been deployed to the company’s subsidiary in Ethiopia have confronted that reality.

As they help start up and operate Safaricom Ethiopia, said Peter Ndegwa, Safaricom’s Chief Executive Officer, they find it very strange that they are now the challengers.

“We have to learn to play challenger and for the past four years we have learnt,” said Peter as he reflected on the journey so far.

In Safaricom’s latest financial results, Safaricom Ethiopia’s start up losses reduced to KSh13.3 billion from KSh28.2 billion in a similar period last year, signifying for the company’s heads that their projections for breaking even by 2027 are on course.

Beyond the financials, said Peter, Safaricom’s presence has had an impact on the market and specifically their competitor, Ethiotel.

“We have elevated the level of service and experience. The competition has had also to invest so they can deliver the level of experience,” said Peter.

Ethiotel, the country’s pioneering mobile phone operator, has been declared a Significant Market Player, which means they will be closely watched by the regulator, like it happens with Safaricom in Kenya. If that happens, the playing ground may be levelled significantly.