Safaricom Bids For Ethiopia Telecom License, Investors Remain Cautious

“The ECA has indicated that proposals from interested bidders must be submitted by 26th April 2021, and the successful bidders will be announced within thirty (30) days (subject to timings subsequently advised by the ECA),” said Safaricom on Monday.

The deadline for submitting bids is set for Monday 26th April 2021, and according to the Ethiopian Communications Authority (ECA), successful bidders will be announced within 30 days. If successful, Safaricom will continue focusing on M-Pesa, and data business in the  Ethiopian market.

At the close of trading Monday, Safaricom recorded the highest volume of 6.8 million traded shares at Ksh 39.00 per share on the Nairobi Securities Exchange, recording a 0.52 percent gain over its previous closing price of 38.8 shillings.

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Ethiopia’s nascent telecommunications sector is considered one of the most lucrative in the economy as the once inward-looking country opens up to foreign investment for the first time.

Players like Safaricom are attracted by the growth potential in the Ethiopian market, whose 100 million population offers a penetration rate of 44 percent.

Safaricom is regarded as the largest telecommunications company in the region that has been posting some of the profits that have been described as “crazy.” In Kenya, the giant capitalizes on M-Pesa that brings in most of its revenue.

Products such as Fuliza have taken over Kenya by storm with Kenyans taking over 500 million shillings daily as an overdraft.

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