M-Pesa, the East African mobile payment leader, is encountering significant challenges in Ethiopia following Ethio Telecom's decision to block its data access in December 2025. The move comes after M-Pesa launched its M-PESA LeHulum service aimed at enhancing financial inclusion. However, Ethio Telecom, which holds a 90% market share with 5480 million users, views M-Pesa as a competitive threat, complicating Safaricom's operations with high licensing fees and restrictive settlement rules. In Kenya, M-Pesa's rapid expansion has been accompanied by an increase in fraud and gambling activities. Additionally, unregulated platforms are reportedly being exploited for smuggling and trafficking. These developments are drawing attention from major investors like Vodacom and Sumitomo, who are concerned about the political risks impacting the region's market potential.