Safricom suspend operations in Ethiopia's second largest region

Safaricom Ethiopia recently took the decision to suspend its operations within the Amhara region, the second-largest region in the country. This decision came in response to the federal government's implementation of a six-month state of emergency in the area, commencing on August 4, 2023. This measure was enacted due to a crisis that emerged between the nation's military and the Fano militia, an irregular militia lacking a formal command structure.

The Fano militia previously supported federal forces during a two-year-long civil conflict in the nearby Tigray region. This conflict was resolved last November through a truce. Nevertheless, certain factions within the region have expressed concern over what they perceive as the national government's insufficient attention to Amhara's security, resulting in strained relations.

Tensions escalated into conflict on August 1, 2023, as clashes broke out between the Ethiopian National Defence Forces (ENDF) and the Amhara militia Fano. These clashes occurred across various locations within the Amhara Region, initially erupting in Kobo and Debre Tabor. The subsequent day saw Fano asserting control over Lalibela Airport.

As a consequence of these developments, the government declared a state of emergency in the region just two days later. Consequently, Safaricom's services have become inaccessible to millions of residents in the Amhara region.

The impact of this shutdown on Safaricom Ethiopia's network of 1,272 sites remains undisclosed at present. Nevertheless, Michael Joseph, Chairman of Safaricom Ethiopia, acknowledged that this halt in operations has impeded the company's momentum for expansion across the vast nation.

In light of the recent events, Joseph emphasized that the country represents a competitive market, and ensuring its stability takes precedence over all other considerations. The chairman pointed out that an unstable environment can pose significant challenges to effective operations.

Safaricom aims to establish 3,000 network sites in Ethiopia by the conclusion of 2024. As of now, Safaricom Ethiopia boasts 875 self-constructed network sites spanning 22 cities across the nation, with an additional 397 collocated sites. The company's customer base includes 2.1 million 90-day active users, with an ambitious target of reaching 10 million by 2024.

Despite the disruptions, Safaricom Ethiopia remains committed to its plans of introducing a mobile money service in the country before the year's end.