⚠ Ethiopia Loses ¥13 Billion a YearModerate threat

Sumitomo Corporation (8053) — threat to the moat

Sumitomo's Ethiopian telecom venture is losing ¥13 billion a year after its Myanmar one lost ¥35 billion.

Safaricom Telecommunications Ethiopia, in which Sumitomo holds 23.50%1, lost Sumitomo ¥14.7 billion and ¥13.1 billion in the last two years2. Building a new mobile network is expensive.

Telecom losses (¥ bn)35.2Myanmar, yr to Mar 202414.7Ethiopia, yr to Mar 202513.1Ethiopia, yr to Mar 2026Losses shown as magnitudes; Sumitomo reports 2025 and 2026
Two emerging-market telecom bets, two losses.

Sumitomo has been here before. In the year to March 2024 it recorded a loss of ¥35,215 million on its telecom business in Myanmar3,.

The Ethiopian loss is the main reason the Communication Services segment's return on invested capital is 3%4.

Sumitomo's stake rose slightly in March 2026, from 23.45% to 23.50%5, which means it continues to put money in rather than stepping back. The company did not publish a forecast for the venture's result in the current year6.

The measure is the equity loss. Narrowing would show the network approaching profitability; widening would repeat the Myanmar pattern.

References
  1. ReportedSafaricom Telecommunications Ethiopia, in which Sumitomo holds 23.50%, lost Sumitomo ¥14.7 billion and ¥13.1 billion in the last two years.
    Sumitomo Corporation, results presentation for the year to March 2026 - SCSK, Net One Systems, JCOM, Jupiter Shop Channel and Safaricom Ethiopia. — FY to March 2026 · publ. May 2026 · source ↗
  2. ReportedSafaricom Telecommunications Ethiopia, in which Sumitomo holds 23.50%, lost Sumitomo ¥14.7 billion and ¥13.1 billion in the last two years.
    Sumitomo Corporation, results presentation for the year to March 2026 - SCSK, Net One Systems, JCOM, Jupiter Shop Channel and Safaricom Ethiopia. — FY to March 2026 · publ. May 2026 · source ↗
  3. ReportedIn the year to March 2024 it recorded a loss of ¥35,215 million on its telecom business in Myanmar,.
    Sumitomo Corporation, Annual Financial Report for the year to March 2025 (English) - including the Ambatovy impairment of ¥75,462 million and the Myanmar telecom loss of ¥35,215 million in the year to March 2024. — FY to March 2025 · publ. June 2025 · source ↗
  4. ReportedThe Ethiopian loss is the main reason the Communication Services segment's return on invested capital is 3%.
    Sumitomo Corporation, results presentation for the year to March 2026 - return on invested capital and invested capital by segment, the eight growth areas and the low-growth, low-return capital. — FY to March 2026 · publ. May 2026 · source ↗
  5. ReportedSumitomo's stake rose slightly in March 2026, from 23.45% to 23.50%, which means it continues to put money in rather than stepping back.
    Sumitomo Corporation, results presentation for the year to March 2026 - consolidated results, underlying profit, forecasts, sensitivities and the loss buffer. — FY to March 2026 · publ. May 2026 · source ↗
  6. ReportedThe company did not publish a forecast for the venture's result in the current year.
    Sumitomo Corporation, results presentation for the year to March 2026 - consolidated results, underlying profit, forecasts, sensitivities and the loss buffer. — FY to March 2026 · publ. May 2026 · source ↗
Sources
Generated September 24, 2026