This archive report was first published on 30 September 2021.
Published on September 30, 2021, the Common Market for Eastern and Southern Africa (Comesa) Competition Commission has launched a formal inquiry into the joint venture between Safaricom and its parent firm Vodafone for Ethiopia entry.
The regional trading bloc's competition watchdog said it's investigation will assess whether the merger of the two telcos would skew competition in the regional market.
According to a notice by the watchdog, the Commission will determine whether the proposed transaction is likely to substantially prevent or lessen competition within the Common Market and whether it is or would be contrary to the public interest.
Interested stakeholders, including competitors, suppliers, and customers of the parties to the proposed transaction, have been given until October 19, 2021, to submit written representations to the Commission.
The Safaricom-led consortium, which also includes British development finance agency CDC Group and Japan's Sumitomo Corporation, received a telecommunication operator licence in Ethiopia in July this year after incorporating a local company.
By June next year, the company aims to build a team of 1,000 employees, according to Anwar Soussa, managing director of Safaricom Ethiopia.
