This archive report was first published on 28 October 2019.
October 28, 2019
Safaricom Seeks to Tap into Ethiopia's Growing Telecom Market ¶
Safaricom, Kenya's largest telecom operator, is considering a bid for a permit to operate in Ethiopia's fast-growing telecom market.
The move comes after Addis Ababa issued a timetable for the auction of two new telecoms licences, with firms keen on bidding having until November 22 to show interest.
According to the Ethiopian Communications Authority, the regulator intends to issue two additional licences for telecommunications services operators through a competitive process.
Players like Safaricom are attracted by the growth potential in the Ethiopian market, whose 100 million population offers a penetration of 44 percent.
Kenya's 52.2 million mobile phone subscribers give it a penetration of 109.2 percent, highlighting the vast opportunities for growth in Ethiopia.
Mobile money platform M-Pesa, which has transformed Kenya's economy, could also have a significant impact in Ethiopia by allowing people to sidestep a rickety and inefficient banking system.
"We don’t know at this stage. We will decide after the consultation period," said Michael Joseph, Safaricom's interim CEO, in reference to next month’s deadline.
