Safaricom Shareholders Approve Plans for Expansion in Ethiopia

Safaricom shareholders have given the go-ahead to the setting up and incorporation of Safaricom Telecommunications Ethiopia PLC, a new company set to begin operations in Ethiopia by 2022.

Safaricom Telecommunications Ethiopia PLC was set up in early July after the consortium led by Safaricom was awarded the license to operate telecommunication services in Ethiopia.

The consortium brings together Vodacom Group (Kenya), Vodafone Group (South Africa), Sumitomo Corporation (Japan), and CDC Group (the UK).

The three telcos have proven experience in telecommunications with large-scale network deployment capabilities, operations, and service provision.

Safaricom appointed Anwar Soussa as the Managing Director of the Global Partnership for Ethiopia consortium. Anwar will lead the setting up of the operations and will report to the board of directors of Safaricom Telecommunications Ethiopia PLC and Peter Ndegwa, Safaricom PLC Chief Executive Officer (CEO).

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Safaricom Telecommunications Ethiopia PLC is expected to create a digital transformation that will positively impact the economic and social lives of the country.

According to Michael Joseph, Safaricom’s Chairman of the Board, the company’s track record of consistently providing quality telecommunication services will go a long way in enabling Ethiopia to access a world-class array of digital services.

“The board is committed to working with management to deliver value to our shareholders but, most importantly, to ensure we continue to be there for our customers, staff, and the community, especially in this new phase,” said Mr. Joseph.

Safaricom’s chief, Peter Ndegwa, noted that entry into Ethiopia has brought to life the company’s dream to expand beyond Kenya.

“Ethiopia is a critical part of our strategy under Mergers, Partnerships & Acquisitions. We are proud to lead this partnership that will provide quality and affordable mobile and internet connectivity to enable more Ethiopians to access quality telecommunications services,” said Mr. Ndegwa.

“Even as we start operations in Ethiopia, we pledge to continue investing in our country ensuring to always offer our customers superior network connectivity and efficiently enhance our network, products, and services,” he added.

During the announcement, the shareholders also approved the final dividend of 0.92 shillings per share with the dividend payout amounting to 36.8 billion shillings.

The dividend will be payable on or before 31 August 2021 to the shareholders on the Register of Members as at close of business 30 July 2021.

Safaricom had previously approved an interim dividend of 0.45 shillings a share amounting to 18 billion which was paid to shareholders on 31 March 2021.

Despite the pandemic, Safaricom exhibited resilience during the year to sustain overall performance. This was coupled with operational efficiency and improved asset utilization that boosted recovery especially in the second half of the year.

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The company recorded flat growth in the financial year ending March 2021 and is set to roar back into growth in 2021.

“We are proud of how resilient our business and financial performance has been during these challenging times. We remain optimistic about the future despite the tough economic times as we implement the new strategy of being a purpose-led technology company,” concluded Mr. Ndegwa.