In a surprising turn of events, Ethio Telecom, Ethiopia’s dominant mobile network operator, has reportedly blocked access to Safaricom Ethiopia’s newly launched M-Pesa Lehulum app. The app, which was introduced on December 1, 2025, was designed to function across all mobile networks in Ethiopia. However, users attempting to access the app through Ethio Telecom’s mobile data network have been unable to log in, perform transactions, or access their funds.
This disruption has raised concerns regarding the accessibility of digital financial services in Ethiopia and the potential regulatory implications. M-Pesa Lehulum, which offers services such as money transfers, bill payments, and short-term loans, was developed to bridge the gap between different telecom networks in Ethiopia, but it now faces a major hurdle in its quest to expand digital financial inclusion.
What is M-Pesa Lehulum?
M-Pesa Lehulum is a mobile money app designed to offer more comprehensive financial services than traditional mobile money systems. Unlike other mobile money services in Ethiopia, which are tied to specific telecom networks (such as Ethio Telecom’s Telebirr), M-Pesa Lehulum operates independently of the telecom network, allowing users to register with any phone number and use the app across multiple mobile carriers.
The app was built to facilitate various financial activities, including:
- Money Transfers: Sending money to family, friends, or businesses
- Bill Payments: Paying utility bills, taxes, and more
- Airtime Purchases: Buying mobile airtime for any carrier
- QR Payments: Making payments using QR codes
- Short-Term Loans: Accessing microloans via the app
M-Pesa Lehulum is connected to ETHSwitch, Ethiopia’s national payment network, which enables seamless transfers between banks and digital wallets. The app has received regulatory approval from the National Bank of Ethiopia and Information Network Security Administration (INSA), allowing it to operate legally within the country.
The Problem with Ethio Telecom’s Blockage
Despite the innovative nature of M-Pesa Lehulum, which aims to foster financial inclusion in Ethiopia, the app faces significant barriers in accessing the market due to the ongoing issue with Ethio Telecom. While the app works on Wi-Fi and other mobile data connections, users who rely on Ethio Telecom’s network cannot access the service, disrupting their ability to use the app for transactions or withdrawals.
This has raised questions about the potential interference with legally approved operations and whether this situation violates the principle of net neutrality—the idea that internet service providers should not discriminate against specific content, applications, or services.
The Market Impact of Ethio Telecom’s Blockage
The timing of this issue is critical, as it comes right after M-Pesa Lehulum’s launch. The app was designed to expand M-Pesa’s reach beyond Safaricom’s own subscriber base and increase mobile financial services’ penetration in Ethiopia. However, the blockage by Ethio Telecom threatens to limit the service’s effectiveness, particularly considering the wide reach of Ethio Telecom’s network. The operator boasts over 80 million subscribers, making it the primary provider of mobile services in the country.
Additionally, Ethiopia’s mobile money space is dominated by Telebirr, Ethio Telecom’s own mobile money service, which has around 30 million users. In contrast, M-Pesa Ethiopia, launched in 2023, had about 3.4 million active users by September 2025, indicating significant room for growth. However, without access to Ethio Telecom’s mobile data network, M-Pesa Lehulum’s growth and its ambitions to bridge the digital gap in Ethiopia will face an uphill battle.
Regulatory Response
The Ethiopian Communications Authority (ECA) has confirmed awareness of the issue but stated that the regulation of financial technologies like M-Pesa Lehulum falls under the jurisdiction of the National Bank of Ethiopia (NBE). Neither the ECA nor the NBE has provided a public resolution or timeline for the issue, leaving users in the dark about when the service will be fully accessible.
M-Pesa Ethiopia, in response, emphasized that it operates as a standalone legal entity with proper regulatory approvals under the Payment Instrument Issuer license. The company expressed concerns that the blockage raises serious questions about net neutrality and market interference by Ethio Telecom.
The Role of M-Pesa in Ethiopia’s Digital Economy
Despite the setback, M-Pesa Lehulum holds significant promise for Ethiopia’s financial ecosystem, which is still heavily reliant on cash transactions (accounting for over 95% of the market). Digital financial services like M-Pesa are key to improving financial inclusion by integrating more people into the formal economy and offering accessible, low-cost services.
The government of Ethiopia has made strides in opening up the telecom market, with Safaricom being granted a license to operate in the country in 2022, breaking the decades-long state monopoly. The country has also made efforts to modernize its financial sector by introducing mobile money services, making the expansion of M-Pesa particularly timely.
However, the disruption caused by Ethio Telecom threatens to slow down the adoption of digital financial services and limit Ethiopia’s potential for future growth in mobile money and digital payment systems.
Conclusion
The ongoing issues with Ethio Telecom blocking M-Pesa Lehulum access highlight the challenges facing new entrants in Ethiopia’s telecom and financial services markets. As the country opens up to competition, the ability of regulators to maintain a level playing field will be crucial in ensuring that companies like M-Pesa can effectively serve the population and help bring more Ethiopians into the digital economy.
While the regulators are still working to resolve the issue, it remains to be seen how this situation will impact Safaricom’s ambitions for expansion in the Ethiopian market and whether net neutrality will become a more prominent issue in Ethiopia’s regulatory landscape moving forward.
Stay tuned for further updates on the situation as M-Pesa Lehulum continues its rollout across Ethiopia.
