A Safaricom-led investor group, which includes South Africa’s Vodacom, has launched mobile services in Ethiopia after securing an operating licence from the government in 2021.
At the same time, Safaricom Ethiopia has been granted a mobile financial services licence, allowing it to launch mobile money services in the East African country.
Safaricom, which is 34.9% owned by Vodacom Group, is the lead in the investor group, which, according to Safaricom’s 2022 annual report, is made up of:
- Vodafamily Ethiopia Holding Company, with a 61.9% stake (the main shareholder being Safaricom with an effective 55.7% of Safaricom Ethiopia, and Vodacom holding an effective 6.2%).
- Japan’s Sumitomo Corporation, with 27.2%.
- British International Investment, formerly CDC Group, with 10.9%.
Through its 34.9% stake in Safaricom and its 6.2% direct stake in Safaricom Ethiopia, Vodacom Group holds an effective 25.7% interest in the Safaricom Ethiopia business.
Vodacom rival MTN Group had also expressed an interest in securing a licence in Ethiopia but, after having its initial application rejected, has said it is no longer interested in the East African market.
Safaricom Ethiopia on Thursday switched on mobile services in Addis Ababa, the country’s capital.
Safaricom Ethiopia is the first licensee to challenge Ethio Telecom, the state-owned monopoly. Ethiopia is one of the few remaining telecommunications markets worldwide to be opened to competition.
Now read: Why MTN is walking away from Ethiopia
“Safaricom Ethiopia’s 2G, 3G and 4G mobile services are available in 11 cities from today, including the capital and the country’s second largest city of Dire Dawa,” Vodacom said in a statement.
“The company plans to launch services in a total of 25 cities by April 2023 to meet the 25% population coverage obligation in its licence.” — © 2022 NewsCentral Media
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