The official launch of Safaricom Telecommunications Ethiopia took place on Thursday 6 October in Addis Ababa, the capital of this country of 118 million inhabitants, in the presence of Ethiopian Prime Minister Abiy Ahmed and Kenyan President William Ruto. The launch of Safaricom Telecommunications Ethiopia puts an end to the monopoly of the state-owned company Ethio Telecom, which is 100% owned by the Ethiopian government.
Safaricom Ethiopia has launched its mobile telecommunications network and services in Addis Ababa. The Ethiopian government has launched “Digital Ethiopia 2025” to help the country realize its digital potential and leverage technology to build a more prosperous society. As part of this process, Safaricom Ethiopia has been granted a nationwide unified telecommunications service license and is the first company in the country to launch a competitive mobile service over Ethiopia’s state-owned Ethio Telecom.
Safaricom Ethiopia’s 2G, 3G and 4G mobile services are available, as of Thursday, Oct. 6, in 11 Ethiopian cities, including the capital, Addis Ababa, and the country’s second largest city, Dire Dawa. The company plans to launch services in a total of 25 cities in Ethiopia by April 2023, in order to meet the 25% population coverage requirement of its license. Safaricom Ethiopia, it is explained, is building a wholly owned mobile network and has also put in place infrastructure sharing and interconnection agreements with Ethio Telecom.
Safaricom Ethiopia is owned by an international consortium including Vodafone Group, Safaricom PLC, Vodacom Group, Sumitomo Corporation, one of the world’s largest trading and business investment companies, and British International Investment (BII) – the UK’s development finance institution and impact investor.
Peter Ndegwa, CEO of Safaricom PLC, said: “For two decades, Safaricom PLC has combined the power of technology and our innovative spirit to solve customer and societal challenges. Led by our Purpose to Transform Lives, we have deepened digital and financial inclusion in Kenya by connecting people to people, people to opportunities and people to information. With these lessons and experiences, we look forward to positively impacting the people of Ethiopia with a sustainable and quality mobile network that will be a vital launch pad for nationwide digital telecommunications services to over 118 million Ethiopians”.
East Africa’s leading telecommunications company
Safaricom PLC is East Africa’s leading telecommunications company with more than 38 million customers and an estimated total economic value of $3.58 billion in the 12 months to March 2021. Listed on the Nairobi Stock Exchange and with annual revenues of more than $2.5 billion, Safaricom provides connectivity through a wide range of technologies, 2G, 3G, 4G and 5G, covering a total of more than 99% of Kenya’s territory. Safaricom operates the world’s largest mobile payment system and Africa’s largest Fintech – M-PESA, the world’s first mobile money transfer system. By enabling more than 28 million customers to transact, save, or borrow money through their cell phones, M-PESA has increased Kenya’s financial inclusion rate from 25 percent to more than 82 percent of the adult population and generates more than $826 million in revenue annually.
Vodafone
For its part, Vodafone operates mobile and fixed networks in 21 countries, and partners with mobile networks in 47 others. As of June 30, 2022, the company had more than 300 million mobile customers, more than 28 million fixed broadband customers and 22 million TV customers. Vodafone is a global leader in the Internet of Things (IoT), connecting approximately 160 million devices and platforms.
Vodacom
Vodacom, on the other hand, is a leading African communications company that provides a wide range of communications services, including data, mobile and fixed voice, messaging, financial services, enterprise computing and converged services to 123.7 million customers (including Safaricom). Headquartered in South Africa, Vodacom also operates in Tanzania, the Democratic Republic of Congo (DRC), Mozambique, Lesotho and Kenya. The company’s mobile networks cover a population of over 295.8 million people. Through Vodacom Business Africa (VBA), Vodacom provides managed services to businesses in 47 countries. Vodacom is majority owned by Vodafone (60.5% stake), one of the world’s largest communications companies by revenue.
Sumitomo Corporation
Sumitomo Corporation (“SC”) is one of the world’s leading Fortune 500 trading and investment companies with 131 locations (Japan: 20, overseas: 111) in 66 countries and regions. The entire SC group consists of approximately 900 companies. SC conducts commodity transactions in all sectors using global networks, provides financing to customers, serves as an organizer and coordinator for various projects, and invests in companies to promote greater growth potential. SC’s core business areas include six business units: Metal Products; Transportation and Building Systems; Infrastructure; Media and Digital; Related Life and Real Estate; and Mineral Resources, Energy, Chemicals and Electronics, and one initiative: Energy Innovation.
British International Investment
British International Investment (“BII”) is the new name of the UK’s development finance institution, formerly known as CDC Group.
British International Investment invests between £1.5 and £2 billion annually to support the UK Government’s Clean Green initiative and create productive, sustainable and inclusive economies in our markets. The company has invested in over 1,300 companies in emerging economies and has total assets of £7.7 billion.
