Afrigather The Kenyan telecoms big Safaricom introduced on Thursday that it had signed a deal to supply a cellular cash switch service in Ethiopia, making it the primary personal telecoms operator in Africa’s second most populous nation.
Safaricom’s entry into Ethiopia ends the monopoly of state-owned Ethio Telecom within the tightly managed nation of greater than 110 million folks.
Safaricom has launched its community and providers within the capital Addis Ababa, following profitable trials in 10 different cities, the Kenyan telecoms big stated in an announcement.
The Ethiopian authorities introduced final 12 months its intention to finish the state monopoly within the telecommunications sector, a key ingredient of Prime Minister Abiy Ahmed’s financial reform programme.
Safaricom’s community will provide 4G information, voice and SMS providers between Safaricom Ethiopia and Ethio Telecom clients whereas “the rollout of the nationwide community will proceed to achieve an extra 14 cities by April 2023,” the assertion stated.
Safaricom then introduced that it had obtained a licence to function a cellular cash switch service in Ethiopia, just like its M-Pesa service launched in Kenya the place it has turn into indispensable.
The deal is “essential. It was a part of the marketing strategy,” Safaricom Ethiopia CEO Anwar Soussa advised AFP on the firm’s launch ceremony, including that the service might take two to a few months to roll out.
The offers have been introduced as Kenya’s new president, William Ruto, visited Ethiopia and held talks with Mr Abiy.
Listed on the Nairobi Inventory Change, Safaricom is among the largest corporations in East Africa, its success fuelled by M-Pesa, launched in 2007.
Safaricom is 35% owned by the Kenyan authorities and 40% by South Africa’s Vodacom, with the remaining shares listed on the inventory alternate.
In 2021, as a part of plans to reorganise the telecommunications sector, Ethiopia launched a young to award two licences to non-public telecommunications operators.
One licence was awarded to a consortium led by Safaricom, which supplied $850 million and promised to take a position $8.5 million over 10 years. Ethiopia has additionally began the method of promoting a 40% stake in Ethio Telecom, however plans have been placed on maintain earlier this 12 months.
