Full Breakdown
Facebook and Safaricom Collaborate on the Daraja Subsea Cable Project
9/5/2025, 12:41:40 PM
Overview of the Daraja Cable Project
Facebook, through its infrastructure arm Meta's Edge Network Services, is partnering with Safaricom to develop the Daraja Cable, a subsea fibre optic project designed to enhance internet connectivity in Kenya. This ambitious project will connect Oman to Mombasa, spanning 4,108 kilometers and featuring 24 fibre pairs, significantly increasing bandwidth capacity. The project is expected to go live in 2026, with an estimated cost of $23 million for the Kenyan segment.
Implications for Safaricom and Kenyan Internet Connectivity
The Daraja Cable is a strategic move for Safaricom, which currently relies on third-party agreements for much of its internet bandwidth. By establishing its own subsea cable, Safaricom aims to reduce dependency on operators like SEACOM and Telkom Kenya, potentially lowering costs for consumers and enhancing service reliability. This initiative comes at a time when Safaricom faces competition from Starlink's satellite internet and other subsea cable projects being developed by competitors like Airtel.
Safaricom's Growth and Expansion Plans
As Safaricom approaches its 25th anniversary, CEO Peter Ndegwa has highlighted the company's significant achievements, including surpassing $3 billion in revenue and reaching 50 million customers in Kenya. Despite its dominance, Ndegwa sees substantial growth potential, particularly in Ethiopia, where Safaricom has secured a mobile license and aims to expand its customer base from 10 million to 15 million by the end of the year. The Ethiopian market, with a population of 125 million, presents a vast opportunity for growth, despite initial losses attributed to high start-up costs and currency reforms.
Criticism and Challenges
While the Daraja project and Safaricom's expansion plans are ambitious, there are concerns regarding the company's market dominance. Recent comments from a government minister have suggested the possibility of breaking up Safaricom's core units, a move Ndegwa has dismissed as lacking visible benefits. Additionally, the company's operations in Ethiopia have faced challenges, including a turbulent economic environment and competition from state-owned Ethio Telecom.
Official Statements and Responses
Ndegwa has expressed confidence in Safaricom's ability to achieve profitability in Ethiopia by 2027, emphasizing the importance of scale and the company's robust financial position in Kenya. He stated, “When our Ethiopian operation becomes a growth driver, we expect double-digit growth in both top and bottom line, because Ethiopia has the scale to deliver over time.”
Verbatim Quotes
- “Daraja gives Safaricom its own bandwidth muscle, reducing reliance on third parties and, potentially, lowering costs for end users.” — Hillary Keverenge, Tech-ish Kenya
- “In Ethiopia we’ve reached 10 million customers in three years. It took eight years to achieve that milestone in Kenya. That shows the importance of scale,” — Peter Ndegwa, CEO of Safaricom
- “Ndegwa dismissed the idea, saying there is no visible benefit in such a drastic move.” — Peter Ndegwa, addressing concerns over potential market breakup
Conclusion
The collaboration between Facebook and Safaricom on the Daraja Cable project represents a significant step towards enhancing internet connectivity in Kenya. As Safaricom continues to expand its operations both domestically and in Ethiopia, the company faces both opportunities and challenges that will shape its future in the rapidly evolving telecommunications landscape.
