By Dawit Endeshaw
Friday October 7, 2022
Anwar Soussa, Managing Director of Safaricom Telecommunications Ethiopia PLC, with Safaricom Ethiopia Chairperson Michael Joseph, Safaricom CEO Peter Ndegwa, and Vodacom group CEO Shameel Joosub, hold Safaricom sim-cards during the Safaricom Ethiopia service launch in Addis Ababa, Ethiopia, October 6, 2022. REUTERS/Tiksa Negeri
ADDIS ABABA (Reuters) - Kenya's Safaricom launched its
mobile network in Ethiopia on Thursday, becoming the first private operator in
one of Africa's largest telecoms markets.
State-owned Ethio Telecom has until now enjoyed a monopoly
in Ethiopia, Africa's second-most populous country with an estimated 118
million people.
Safaricom Ethiopia switched on its network and services in
the capital Addis Ababa on Thursday following network pilots in 10 cities, it
said in a statement.
Hours later Ethiopia's finance minister, Ahmed Shide, said
his government had granted the company a licence to operate a mobile money
service.
Safaricom Ethiopia CEO Anwar Soussa said the mobile money service
would take two to three months to roll out.
Safaricom leads a consortium entering the market including
South Africa’s Vodacom and Britain’s Vodafone.
Its network was supposed to launch in April but was delayed
because of the coronavirus pandemic and logistical challenges.
Safaricom Ethiopia said it plans a national network rollout
to reach 14 additional cities by April 2023.
"We are optimistic about how the technology and
connectivity we are providing will contribute to a digital future and eventually
transform people's lives," said Safaricom CEO Peter Ndegwa.
Kenyan President William Ruto, who attended the launch, said
the mobile money licence had not been agreed when he departed from Nairobi,
Kenya's capital, on Thursday morning.
Ruto said he "had a mission to come back with a
deal."
Safaricom launched the world's first-ever mobile phone-based
money transfer service 15 years ago, and the business, known as M-Pesa, has
evolved to account for roughly half of the company's annual revenue.
The government announced plans to partially privatise Ethio
Telecom after Prime Minister Abiy Ahmed took power in 2018 but said in March
that it had decided to postpone the process, citing economic challenges.
Ethiopia’s telecoms industry is considered the big prize in
Abiy's push to liberalise the economy.
But Abiy's efforts to open up the economy to investment have
been damaged by a nearly two-year-long war in the northern region of Tigray,
which has killed thousands and uprooted millions.
Abiy and Ruto were due to speak later on Thursday at
Safaricom Ethiopia's official launch ceremony in Addis Ababa.
(Reporting by Dawit Endeshaw in Addis Ababa; Writing by
Aaron Ross; Editing by Hereward Holland and Matthew Lewis)