Safaricom’s entry will transform your economy, Uhuru tells Ethiopia

President Kenyatta in Addis Ababa, Ethiopia, on June 8, 2021/ PSCU

President Uhuru Kenyatta has said the entry of Kenya’s telco giant Safaricom will help transform Ethiopia by positively impacting most sectors of the 112 million population economy.

President Kenyatta on Tuesday lauded Prime Minister Dr Abiy Ahmed and his administration for choosing to liberalize the country’s telecommunications sector, acknowledging Safaricom’s impact on the Kenyan economy over the years.

“Today’s ceremony is the first step in an exciting and rewarding opportunity for Ethiopia. Kenya has seen the great gains and opportunities unleashed by Safaricom across the entirety of our socio-economic landscape.

“Ethiopia now stands at the cusp of making even greater strides in Safaricom’s areas of strength; which include digital presence, mobile money, telephony, data and fibre connectivity, and business solutions,” President Kenyatta said in Addis Ababa.

He spoke during the issuance of an operation license to the Safaricom led Global Partnership for Ethiopia consortium which won the Sh91.8 billion bid to operate in the country for 15 years, making it the first private telecoms player in the country.

Uhuru witnesses Safaricom licence award signing in Ethiopia

Global Partnership for Ethiopia brings together Safaricom, South Africa’s Vodacom, UK’s Vodafone, British finance agency CDC Group, and Japan’s Sumitomo Corporation won the.

With the issuance of the license, the consortium will start its operations next year and is expected to expend over Sh864 billion in 10 years, making it the largest FDI in Ethiopia’s history.

At the historic agreement signing ceremony held at the iconic Friendship Park in Central Addis Ababa, the President told the Ethiopian government to consider opening up opportunities for mobile money services as part of the telecommunications liberalization process.

“In Kenya, the success of M-Pesa, Africa’s, if not global, first mobile money platform, is a classic example of what possibilities lie in mobile financial services, if fully exploited.

“Studies have shown that enhanced access to mobile financial services, have a great potential to reduce poverty as more people are enabled, easier and safer savings and in effect, greatly influencing the kind of choices they make in life,” President Kenyatta said.

He said mobile financial services are key in addressing various societal gaps particularly gender disparities as they open up opportunities for women to participate fully in economic development.

Alongside provision of robust telephony services, President Kenyatta said the entry of Safaricom will help Ethiopia create over 1.5 million new job opportunities for its citizens.

PM Abiy said the award of the telecommunications license will catalyse inclusive prosperity.

Dr Abiy said competition will create a vibrant telecommunications sector that will significantly contribute to the growth of the economy through creation of jobs and the rise of new MSMEs.

Other speakers at the event were Safaricom CEO Peter Ndegwa, Ethiopian Communications Authority boss Bacha Reba and Vodafone South Africa’s Shameel Joosub.

President Kenyatta was accompanied by Cabinet secretaries Raychelle Omamo (Foreign Affairs) and Joe Mucheru (ICT).

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