Ethiopia grants telecoms licence to Safaricom-led consortium - Capital Business
Connect with us

Hi, what are you looking for?

www.capitalfm.co.ke
www.capitalfm.co.ke
Safaricom CEO Peter Ndegwa/ Courtesy

Kenya

Ethiopia grants telecoms licence to Safaricom-led consortium

ADDIS ABABA, Ethiopia, May 22 – Ethiopia has granted an operating licence to a consortium of firms including Kenya’s Safaricom, Vodafone and Vodacom, officials said Saturday, a move that will end the state’s monopoly over its stunted telecoms sector.

The consortium bid $850 million for the licence, senior finance ministry adviser Brook Taye told AFP.

The shake-up of the potentially lucrative sector — currently dominated by state-owned Ethio Telecom — is a cornerstone of Prime Minister Abiy Ahmed’s economic reform agenda.

Abiy’s government planned to award two new telecoms licences, but in late April it announced it had received only two bids after some firms that initially expressed interest — including France’s Orange and the UAE’s Etisalat — opted not to submit.

The second bid of $600 million from South Africa’s MTN was “not enough” and was therefore “rejected”, Brook said.

Balcha Reba, director general of the Ethiopian Communications Authority, told AFP that the second licence would soon be re-tendered.

The licences are expected to bring an infusion of cash, jobs and infrastructure investment.

The Safaricom-led consortium is set to create up to 1.5 million new jobs and bring $8.5 billion in investment over 10 years, Brook said.

It will provide 4G and 5G internet services, and by 2023 a low-orbit satellite will be put in place to provide nationwide 4G coverage, Brook added.

Advertisement. Scroll to continue reading.

“This is a great day for us and we’re very much excited,” he said.

Ethiopia’s telecoms reforms also include a plan to sell a stake in Ethio Telecom, a move officials hope will make the firm more efficient.

Advertisement

More on Capital Business

Africa

ACCRA, March 17 (Xinhua) — The meltdown of Internet services across Ghana, caused by the disruption of undersea cables over the past few days,...

motors

BEIJING, March 18 (Xinhua) — Global new energy passenger car sales are predicted to exceed 39 million units by 2030, said a report obtained...

Kenya

NAIROBI, Kenya, Mar 18 – NCBA Group has joined forces with Proparco, a French development finance institution, to support green projects as well as...

Health

NAIROBI, Kenya, Mar 18 – The Kenya National Commission of Human Rights (KNCHR) has condemned the discriminatory action by the Kenya Revenue Authority (KRA)...

Tourism

NAIROBI, Kenya, Mar 18 – Travel booking platform Tripitaca has rebranded to Triply, which it says signals its growth. The company says the move...

Kenya

NAIROBI, Kenya, Mar 18 – The fourth edition of the regional American Chamber of Commerce Kenya (AmCham) Business Summit will be held from April 24–25,...

Kenya

NAIROBI, Kenya, Mar 18 – The Microsoft Africa Development Centre (ADC) has kicked off the second up-skilling cohort to support university lecturers and empower...

Health

NAIROBI, Kenya, Mar 18 – Gertrude’s Children’s Hospital has called for urgent investments from stakeholders in the fight against childhood cancer. Speaking during the...