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President Kenyatta in Addis Ababa to witness issuance of operating license to Safaricom
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President Uhuru Kenyatta is in Ethiopia for a state visit. He was received at the airport by senior government officials including Prime Minister Abiy Ahmed. During his visit, the President is scheduled to witness the issuance of a telecommunications licence to Safaricom and to discuss other issues of mutual concern.
President Uhuru was accompanied by Cabinet Secretary Raychelle Omamo of Foreign Affairs and Cabinet Secretary Joe Mucheru of ICT and Innovation.
Earlier this year, an international consortium led by Safaricom, comprising of Vodafone and Vodacom, UK’s CDC Group and Japan’s Sumitomo Corporation, won a Ksh. 91.8 billion bid to operate in Ethiopia. The tender has increased Safaricom’s share rally to new heights as it aims to grow its presence in Ethiopia.
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The introduction of competition as a result of the opening up of the telecom sector is expected to positively impact every sector of the economy, Prime Minister Abiy Ahmed said.
The premier made the remark on the license agreement signing ceremony between Ethiopia and the Global Partnership for Ethiopia in the presence of President Uhuru Kenyatta of Kenya.
“Overall a more vibrant telecommunication sector will contribute billions to Ethiopia’s economy through SME productivity gains, job creation, and private sector participation, which taken together can have an exponential impact on economic growth,” Abiy noted.
He added that the license agreement will have a positive impact on digital banking and payment systems that will give the government and businesses as well as consumers efficient access to digital financial inclusion and more control over financial transaction.
Julians Amboko talked with Safaricom CEO Peter Ndegwa on a raft of issues, including the political and foreign exchange risks in Ethiopia as well as the valuation of the company.