President William Ruto and Ethiopian Prime Minister Abiy Ahmed have brokered a landmark agreement to back a strategic joint investment between Safaricom and Ethio Telecom.
The deal, announced following high-level bilateral talks in Addis Ababa on December 23, 2025, marks the first time the two governments have formally put their weight behind a cross-border telecommunications partnership of this scale.
A New Frontier: The Digital Integration of the Horn
The core of the discussions focused on accelerating economic integration through technology. The leaders agreed to provide full governmental backing as Safaricom Ethiopia and the state-owned Ethio Telecom explore joint ventures in regional infrastructure and digital services.
What this means for the region:
- Lower Cross-Border Tariffs: Potential for unified regional calling and data rates between Kenya and Ethiopia.
- Expanded M-Pesa Reach: Leveraging Ethio Telecom’s massive subscriber base to deepen financial inclusion.
- Infrastructure Sharing: Joint investments in fiber optic cables to connect landlocked regions to the undersea cables at the Kenyan coast.
“We have agreed to support Ethio Telecom and Safaricom as they explore strategic joint investment opportunities across regional markets.
This is anchored in a common vision for stronger economic integration and digital growth,” stated President Ruto.
Peace, Security, and African-Led Solutions
Beyond the boardroom, the two leaders addressed the fragile security situation in the Horn of Africa. Amidst ongoing tensions in neighboring regions, Ruto and Abiy reaffirmed their commitment to “African-led solutions” for local conflicts.
They resolved to strengthen cooperation in counter-terrorism and intelligence sharing, viewing stability as the prerequisite for the multi-billion shilling digital projects they are launching.
Strategic Implications for Safaricom
For Safaricom, this governmental backing is a major win. Since its 2022 launch in Ethiopia, the telco has faced the challenge of competing with a long-established state monopoly. A “joint investment” model rather than pure competition could allow Safaricom to access Ethio Telecom’s vast existing infrastructure while bringing its own superior mobile money (M-Pesa) technology to the table.
The Road Ahead
As Ruto returns to Nairobi, technical teams from both countries are expected to begin drafting the framework for these joint investments. This “all-weather” partnership signals a shift away from regional rivalry toward a “Co-opetition” model that could serve as a blueprint for the African Continental Free Trade Area (AfCFTA).
