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Safaricom and its partners which make up the Global Partnership for Ethiopia plan to roll out the provision of telecommunications services in the Eastern Africa country by next year.
This comes after the consortium was awarded a license to operate telecom services in Ethiopia last week after presenting a bid worth USD 850 million.
Ethiopia, the second-largest country in Africa with a population of 112 million only has an internet penetration of 20.6 percent. The impact investment consortium aspires to support Ethiopia’s digital transformation and positively enhance the lives of its citizens.
the consortium aims to provide accessible, affordable and high-quality mobile and internet connectivity which will enable greater social inclusion as millions more Ethiopians access quality telecom services.
Increased connectivity in Ethiopia will also boost the economy, impacting over 1 million jobs with digital training and skills, and bringing about productivity improvements for countless micro-entrepreneurs and small and medium-sized enterprises.
Ethiopia is one of the last countries in the world to introduce competition in the telecom industry, a rigorous process started by the government in 2019 as part of its Economic Reform Agenda, with the support of the International Finance Corporation. The reforms aim to increase jobs, reduce poverty and grow the local economy in an inclusive and sustainable manner.
The partners in the consortium are led by Safaricom Plc, a partner member of the Vodafone Group, and will establish a new operating company in Ethiopia. The other partners include: Vodacom Group; Sumitomo Corporation – one of the largest international trading and business investment companies; and CDC Group – the UK’s development finance institution and impact investor.
Peter Ndegwa, CEO of Safaricom, said: “We are excited for the opportunity to work with the people of Ethiopia to set up telecom networks to deliver a digital lifestyle. In past years, we have seen the power of digital transformation and its impact on our customers. We believe by working with all stakeholders in Ethiopia, we can deliver a similar transformation while achieving a sustainable return to our shareholders.”
On Monday, Safaricom’s shares at the NSE hit an all-time high share price of KES 43.50. The surge in investors crowding its counters to buy shares prompted the rise in price. The stocks closed the day at KES 41.75 having traded 8.56 million shares.
Shameel Joosub, CEO, Vodacom Group, is confident the consortium will be able to deliver transformative technology to Ethiopians, particularly targeting health, education and agriculture.
“We want to make a real difference to the lives of Ethiopians through promoting widespread digital inclusion as part of Vodacom’s pledge to connect the next 100 million Africans by 2025.”
