Safaricom reveals ownership of Ethiopia venture
Tuesday May 25 2021
By VICTOR JUMA
Safaricom #ticker:SCOM will own a majority stake in a series of companies formed for entry into Ethiopia’s telecoms market, giving the firm effective ownership of 55.7 per cent in the new venture.
The Nairobi Securities Exchange-listed company has disclosed the exact ownership structure of the consortium that on Saturday won a licence to enter the new market at a cost of $850 million (Sh91.6 billion).
Japan’s conglomerate Sumitomo Corporation is the second-largest investor with a 27.2 per cent stake, followed by UK’s sovereign investment fund CDC Group (10.9 per cent) and South Africa’s Vodacom Group (6.2 per cent).
Safaricom s share rally to new high after winning the Ethiopian tender by VICTOR AMADALA Image: SAFARICOM PLC
•The telco has won a tender license to operate in Ethiopia.
•A top manager in the mobile money department said the firm was looking forward to entering the new market.
Safaricom s share price hit a historical high of 42.75 before settling at Sh42.35 after the telco s linked consortium won a tender to operate in Ethiopia last week.
The firm s share price closed at the Nairobi Securities Exchange (NSE) closed at Sh42 on Friday after a week of limited activities after the lender reported a 6.8 per cent drop in net earnings for the period ended March 31.
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Image sourced from Techweez
Safaricom, alongside parent company Vodafone, has been awarded one operating licence by Ethiopia’s telecommunications regulator. The telco is expected to pay $850 million for the licence.
According to
Reuters, the consortium – led by Safaricom – plans to invest up to $8.5 billion in infrastructure as well as create up to one and a half million jobs.
Ahmed adds, “with over $8 billion total investment, this will be the single largest FDI into Ethiopia to date. 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.”