Vodacom and MTN both want into Ethiopia. Hereâs what they already cover across Africa Business Insider SA
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MTN and Vodacom are both in the running for Ethiopia’s new nationwide telecommunications licence.
Ethiopia, which is primarily served by state-owned firm Ethio Telecom, is attempting to transform its telecoms sector.
Vodacom is the largest of the two by market capitalisation, but MTN has the most subscribers on the continent.
This is how they are dividing the continent between them.
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South African companies MTN and Vodacom have both placed bids in Ethiopia to operate a nationwide telecoms licence, a move that would help one, or both, extend their footprints on the African market – and gain a significant number of customers in Africa s second-most populous country.
Safaricom share hits all-time high on Ethiopia bid
Thursday April 29 2021
Safaricom Plc CEO Peter Ndegwa during the telco s 20-year celebration at the Nairobi Serena Hotel on October 27, 2020. PHOTO | NMG
By VICTOR JUMA
Summary
A total of 11 million shares worth Sh441.7 million changed hands at a price of between Sh39 and an all-time high of Sh40.2.
Foreign investors were net buyers of the telco’s shares, according to a report by stockbroker AIB-AXYS Africa.
Besides news of the possible Ethiopia entry, some investors are also buying Safaricom’s shares in anticipation of the release of its full-year results, which will feature the declaration of a dividend.
Safaricom gets boost as top firms snub Ethiopia bid
Summary
The fact that only two bids were made has narrowed the agency’s options and the bidding process could be reopened, especially if the financial offers fall below the government’s targets.
While both Safaricom and MTN have substantial financial backing, they have emphasised that they will not overpay for the Ethiopian licences.
Wednesday April 28 2021
By VICTOR JUMA
Summary
The fact that only two bids were made has narrowed the agency’s options and the bidding process could be reopened, especially if the financial offers fall below the government’s targets.
Safaricom Bids For Ethiopia Telecom License, Investors Remain Cautious
By Juma / Published April 27, 2021 | 8:42 am KEY POINTS
Ethiopia’s nascent telecommunications sector is considered one of the most lucrative in the economy as the once inward-looking country opens up to foreign investment for the first time.
Safaricom Plc through Vodafone and Vodacom, British development finance agency CDC Group and Japan’s Sumitomo Corporation has made a formal bid to get a license to operate in Ethiopia.
“The ECA has indicated that proposals from interested bidders must be submitted by 26th April 2021, and the successful bidders will be announced within thirty (30) days (subject to timings subsequently advised by the ECA),” said Safaricom on Monday.
Players like Safaricom are attracted by the growth potential in the Ethiopian market, whose 100 million population offers a penetration rate of 44 per cent.