Safaricom pips MTN to Ethiopian operating licence

Ethiopia Telecom has awarded a consortium involving Safaricom, Vodafone, Japan's Sumitomo, and UK finance agency CDC Group the license to operate telecommunication services in Ethiopia. The decision, led by Senior Adviser to the Minister of Finance for Ethiopia, Brook Taye, has significant implications for the telecom sector in the country. The consortium's offer, valued at over $250 million, outshone the competition, leading to the award of one license instead of the initially planned two. This move has sparked discussions around fair competition, policy changes, and the future of Ethiopia's economy. One of the key shifts in policy involves allowing Ethiopia Telecom to venture into mobile financial services through its new service Telever, thereby securing a head start in the market. The decision to issue mobile money licenses to other operators within the next year indicates a commitment to promoting competition while supporting the growth of local enterprises. The presence of an independent regulatory authority aims to ensure fairness and mitigate potential disputes between Safaricom and Ethiopia Telecom. With significant investment expected in the Ethiopian market in the coming years, maintaining a level playing field is crucial to attracting more investors and driving economic growth. In addition to the telecom sector developments, Ethiopia is progressing towards establishing a capital market, with a new proclamation awaiting approval in parliament. The move towards privatizing a portion of Ethiopia Telecom and listing shares on the stock market demonstrates the government's commitment to opening up the economy and creating opportunities for local and international investors. As Ethiopia positions itself for economic transformation and inclusivity, the decisions surrounding telecom licenses, mobile financial services, and capital market development will play a pivotal role in shaping the country's future. The road ahead involves navigating regulatory frameworks, fostering competition, and ensuring transparency in the market to build a sustainable and thriving economy.