Safaricom Chief Executive Officer (CEO) Peter Ndegwa has attributed a Sh15 billion loss that the company made in the full year ending March 31, 2023, to startup losses in Ethiopia.
Ndegwa said that a business has to invest to accelerate growth in the future.
Hadn’t the telco invested in M-Pesa 16 years ago, he said, the company would not be where it is right now.
In October last year, the telecommunications firm launched its services in the Horn of Africa nation, opening a huge market opportunity for the Kenyan unit, Safaricom.
The event, which was held in Ethiopia’s capital Addis Ababa, was attended by Safaricom Chief Executive Officer (CEO) Peter Ndegwa and his Ethiopian counterpart Anwar Soussa.
“And actually, the re-decline in the profits of Safaricom is purely because of the startup losses in Ethiopia,” Ndegwa said.
“A new business has to invest for us to be able to accelerate the growth of these shares in the future,” he added.
“If we didn’t invest in M-Pesa 16 years ago we would not be the business we are in.”
In October last year, the telecommunications firm launched its services in the country, opening a huge market opportunity for the Kenyan unit of Safaricom.
“Five years from now, many people will credit us and says we made the best decision in terms of investing,” he explained.