Safaricom consortia will spend Sh36.3 billion ($300 million) annually in Safaricom Ethiopia.
Safaricom Chief Executive Officer (CEO) Peter Ndegwa said the amount will be invested every year.
This comes at a time when the firm is expanding its infrastructure such as towers and distribution networks in the North-East African Country. “We have invested so far (Sh145.38 billion) $1.2 billion as a consortium of which Safaricom is the majority shareholder,”
“We are going to be investing about $300 million every year. So, we do need to make that right and ensure that we meet the requirement,” the CEO said.
Early this month, Safaricom Ethiopia began its telecommunication services in the country, opening a huge market opportunity for the Kenyan unit Safaricom.
The event, which was held in Ethiopia’s capital Addis Ababa, was attended by Safaricom Chief Executive Officer (CEO) Peter Ndegwa and his Ethiopian counterpart Anwar Soussa.
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The network operator said that it will offer 2G, 3G and 4G mobile services across Ethiopia’s 11 cities, including the Capital as well as the second largest city of Dire Dawa It also announced plans to expand to an additional 25-cities in the country by April 2023, enabling it to reach 25 per cent of its over 90 million population size.
A Safaricom consortia last year got a license to enter the Ethiopian market after bidding Sh91.8 billion. The consortium included British development finance agency CDC Group, Vodafone and Vodacom, and Japan’s Sumitomo Corporation. This was followed by a massive investment in building infrastructure and networks.
Immediately after launching in Ethiopia, the telco was granted a license by the Ethiopian Government to roll out M-Pesa services in a deal tha was brokered by President William Ruto and Ethiopia’s Prime Minister Abiy Ahmed in Addis Ababa, Ethiopia.
Regulatory approval now paves way for the establishment of an M-Pesa unit in Ethiopia, allowing the telco to expand its lucrative mobile money business to the untapped Horn of Africa country with over 100 million people. In the year ended March 2022, Safaricom announced a Sh50 billion profit before tax on its mobile money unit, M-Pesa.
SOURCE: Capital business
