KEY POINTS
- Safaricom calls for fair tariffs and interoperability in Ethiopia’s telecom market.
- M-Pesa faces barriers in payment integration and tax transactions.
- Lawmakers pledge discussions to address Safaricom’s concerns.
Safaricom Telecommunications Ethiopia Plc is pressing Ethiopian lawmakers to ensure a level playing field in the nation’s telecommunications sector, citing discrepancies in access and tariffs that favor state-owned Ethio telecom.
Executives from Safaricom raised these concerns during a visit by the parliamentary Democracy Affairs Committee to its headquarters this week.
CEO Wim Vanhelleputte called for equal access to telecommunications platforms, emphasising the importance of fair competition for advancing digital connectivity and financial inclusion.
Safaricom’s Chief External Affairs Officer, Andualem Admassie, highlighted the issue of tariff disparities, with Ethio telecom charging customers extra for calls to Safaricom’s network, while Safaricom maintains uniform charges for all networks.
Interoperability challenges hinder financial inclusion
According to thereporter, Safaricom also flagged the lack of interoperability between its mobile money service, M-Pesa, and Ethio telecom’s Telebirr as a significant barrier to financial inclusion.
Currently, users of the two platforms cannot transfer funds between them, limiting the potential for seamless transactions and broader digital financial integration.
“Monopoly is a contradiction to liberalization,” Vanhelleputte noted. He stressed the importance of creating a competitive landscape where multiple players, including banks and fintech firms, can offer digital payment solutions.
Andualem pointed to practical limitations, such as Safaricom itself being required to pay taxes through Telebirr, as indicative of the hurdles private operators face.
He urged the government to allow greater flexibility and inclusion for platforms like M-Pesa, which recently received approval to enable fuel payments, though it remains restricted in other areas such as tax payments.
Lawmakers promise engagement
Ewnetu Aleneh, chair of the parliamentary committee, acknowledged Safaricom’s concerns and pledged to facilitate discussions with the Ethiopian Communications Authority and the National Bank of Ethiopia. He expressed a commitment to address the interoperability and tariff disparity issues, including advancing conversations with the relevant finance committees.
Safaricom’s growing presence
Since its launch in 2021, Safaricom Ethiopia has gained 6.1 million active users and established a network of over 3,000 sites, covering 46 percent of the country’s population. Despite these milestones, the company remains determined to overcome regulatory challenges and drive Ethiopia’s digital transformation.
With lawmakers engaging in discussions to address these challenges, Safaricom hopes to contribute more effectively to Ethiopia’s digital economy and achieve greater parity in the telecom sector.
