Safaricom Ethiopia License: Safaricom has won a multi-billion bid to enter into the Ethiopian market. The win follows a Sh. 864 billion that was tabled by a consortium led by the local telecommunications giant.
When making the announcement, Ethiopian Prime Minister Abiy Ahmed said the Safaricom led consortium that includes its parent firms Vodafone and Vodacom, British development finance agency CDC Group and Japan’s Sumitomo Corporation won the award after submitting a financial bid of $850 million (Sh. 91.8 billion), and are now expected to pump in over Sh. 864 billion into the Ethiopian venture.
“The Council of Ministers has unanimously made a historic decision today allowing Ethiopian Communications Authority to grant a new nationwide telecom license to the Global Partnership for Ethiopia which offered the highest licensing fee and a very solid investment case,” Prime Minister Abiy Ahmed said through his Twitter handle on Saturday.
South Africa’s MTN had also bid for a license. However, Balcha Reba, director general of the Ethiopian Communications Authority, said the MTN offer of $600 million was deemed too low.
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Following the win, Safaricom and her partners will secure full operating licenses, but they will not be allowed to operate mobile phone-based financial services, government officials said last year. They will also be required to set up their own network infrastructure, such as cellphone towers.
“With over $8 billion total investment, this will be the single largest FDI into Ethiopia to date,” said the Prime Minister. “Our desire to take Ethiopia fully digital is on track. I would like to thank all that have taken part in this and for pulling off a very transparent and effective process.”