Challenger M-PESA Ethiopia and the incumbent state-backed telecom company Ethio Telecom are locking horns again. This time, the Safaricom-owned mobile money service said Ethio Telecom is blocking access to its new telco-agnostic app, stunting distribution and causing frustration for expectant users.
What’s happening? On December 1, M-PESA Ethiopia launched “M-PESA Lehulm,” built to work with any phone number, after receiving approval from the National Bank of Ethiopia (for mobile money) and the Information Network Security Administration (INSA), the country’s signals intelligence agency. Yet, four days later, Ethio Telecom users were still unable to download the app on their mobile devices, according to M-PESA Ethiopia.
The tension: Frustrated by the alleged anti-competitive behaviour, the mobile money operator issued a public statement calling on regulators to intervene. Ethio Telecom has not responded to the statement.
Between the lines: Ethio Telecom, with over 80 million subscribers (about 60% of the population), wields significant power in Ethiopia’s telecoms industry, and is also becoming a super app. In the last five years, it has launched mobile money, e-commerce, food delivery, e-transport, and card payment services. This puts it atop a market-defining role as an infrastructure provider for many tech entrants in the country.
State of play: A July World Bank report highlighted Ethio Telecom’s monopolistic tendencies due to its position of power. Ethiopia previously ran a closed-economy experiment, heavily restricting foreign players’ entry. However, under recent government efforts, the country has become liberal, famously allowing foreign banks to operate in the space for the first time in half a century.
Safaricom Ethiopia launched services in 2022, and M‑PESA mobile money followed in 2023. The mobile money service has been growing steadily since then. As of Safaricom’s H1 2025 report, M-PESA Ethiopia made KES 8.7 million ($67,275) in revenue, declining sharply by 45% year-on-year. It reported having about 3.4 million active users, a small dent compared to Telebirr’s (mobile money competitor owned by Ethio Telecom) 30 million.
