Safaricom Confirms Having An Interest To Enter Ethiopia

Safaricom has finally confirmed the much-anticipated news that it was planning to set up roots in Ethiopia, one of the most populous nations in Africa.

Safaricom CEO Peter Ndegwa, speaking to The Standard, said the giant telecommunications company would attend to gain access to Ethiopia when the market becomes open to outside players for the first time.

An expression of interest has already been filed by Safaricom with the concerned authorities in Ethiopia. A decision on when the licenses will be issued and to who is expected to be made in 2021. The delay in announcing the decision has been occasioned by the ongoing pandemic.

For the first time, Ethiopia Communications Authority is moving to break the monopoly of state-owned Ethio Telecom by bringing in new players from outside the country.

Other giants in the sector such as MTN and the parent Vodafone have expressed interest in entering Ethiopia. Safaricom is hopeful that it will win the bid to enter into the country that has more than 100 million people.

Safaricom is the largest telecommunications company in Kenya and the most profitable in the whole of the East African region. The company hopes to capitalize on M-Pesa if allowed to enter into Ethiopia.

M-Pesa has over 26 million users in Kenya and has been instrumental in revolutionizing the mobile money sector in the country. For over 10 years, Kenya has led the other 20 countries in financial inclusion thanks to such platforms as M-Pesa.

Covid-19 has affected various businesses in Kenya. The majority of businesses have shut down people have lost jobs and as days go by, the hope of things ever getting better keep on diminishing.

Safaricom, however, despite the virus hitting some of their staff, the consumption of their products and services are still among the top. It is only slightly affected by the stock market as investors think of other investment channels.

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