The Safaricom member of the Global Partnership for Ethiopia (GPE) has become a champion of communication rights to operate in the country. According to the Ethiopian Broadcasting Corporation (ECA) statement, employees will invest more than $ 8 billion in the telecom sector over the next decade.
ECA would like to thank the Global Partnership for Ethiopia for being selected as the new telecom service providers. This is the beginning of a new era in our country & the government’s decision for better communication services for citizens and businesses in #Ethiopia.
– Ethiopian Communications Officer (@eca_ethiopia) May 22, 2021
Consortium, owned by Safaricom with a 56% stake, includes Sumitomo of Japan (25%), CDC Group (10%), Vodacom (6%), Vodafone, and UK capital funds. Ethiopian Prime Minister Abiy Ahmed revealed that the group won the new power after donating $ 850 million.
Kenya’s largest television station, Safaricom, increased its control over international relations by 56% from the first 51% when it was listed as running with MTN to win telecom licenses in Ethiopia. Other companies, including Orange, Etisalat, Telkom SA, and Liquid Telecom, have removed the marketing system.
Safaricom’s entry into Ethiopia marks the end of a decade of television in the country’s telecom market.
A huge win for Safaricom as it spreads its footprint in Africa
Safaricom saw competition from MTN sme data Group and the Chinese Silk Road Fund Consortium at the end of Ethiopia’s telecoms broadcasting year.
Kenyan lawmakers are set to oust Safaricom and Curtail Telco.
Safaricom President Peter Ndegwa
In the process, Safaricom has spread across the Kenyan coast to another country in East Africa, Ethiopia, which has the second-largest population on the continent after Nigeria.
As many as 70 million people in Ethiopia do not connect to any mobile network, bringing huge sales to Safaricom.
This is a huge victory for the Kenyan operator, especially as Ethiopia will now allow the telco to invest in its mobile service, M-Pesa starting in May next year.
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M-Pesa Shop in Kenya
M-Pesa is Safaricom’s largest investment, accounting for 33% ($ 770 million) of telco services in FY 2020. There are only about 1.2 million phone subscriptions (M-Birr) in Ethiopia. Ethio Telecom has just launched TeleBirr’s commercial platform this May, so it offers a great opportunity for another player like M-Pesa.
With more than 40 million employees, the launch of M-Pesa near Ethiopia means it will be in eight African countries, including Kenya, Ghana, Egypt, the Democratic Republic of Congo, Mozambique, Tanzania, and Lesotho.
Moreover, Safaricom is the only non-MTN service provider, and Vodacom has launched a 5G network on the continent. As a result, it is better to provide a high-speed connection in Ethiopia.
It may come as no surprise that two of Africa’s largest telecom operators, MTN and Safaricom, have been at the forefront of seeking to enter Ethiopia’s closed telecoms region.