Safaricom Ethiopia officially launched

Safaricom, the leading telecommunications operator in Kenya, has made history by becoming the first private telecommunications operator in Ethiopia. The company also announced a significant deal for a mobile money service in Africa's second most populous country. Anwar Soussa, the CEO of Safaricom Ethiopia, shared insights on the recent launch event and the company's plans for the future. The ceremonial launch event was attended by dignitaries such as the Prime Minister of Ethiopia and the President of Kenya, marking a pivotal moment in Safaricom's expansion into the Ethiopian market. The network rollout has seen Safaricom cover 10 cities from East to the central part of the country, with plans to reach 25 cities by March. The company aims to cover approximately 25% of the population by then, with current progress indicating they are halfway towards their target. As Safaricom Ethiopia embarks on commercial operations, they have invested around $300 million in the project to date. Despite encountering delays due to the COVID-19 pandemic and logistical challenges, the company remains optimistic about meeting its targets in the coming months. With a keen focus on data services and the forthcoming mobile financial services, Safaricom aims to carve a niche for itself in the competitive Ethiopian market. The recent acquisition of the Mobile Financial Services License has paved the way for the company to introduce a service akin to the successful M-Pesa platform in Kenya. Soussa outlined the company's strategy to leverage its modern network and data offerings to attract customers. While acknowledging the strong presence of competitors in the market, Safaricom plans to capitalize on its experience and infrastructure to provide a seamless mobile money experience. The reception for Safaricom in Ethiopia has been overwhelmingly positive, with the government extending its full support to facilitate the company's entry and operations in the country. In terms of infrastructure, Safaricom plans to collaborate with existing providers to optimize resources and expand coverage efficiently. The company aims to strike a balance between utilizing existing infrastructure and strategically building new assets where needed. Challenges such as supply chain disruptions and operational constraints are being addressed as Safaricom pushes towards its expansion goals. IFC's investment of $160 million in Safaricom Ethiopia signifies a vote of confidence in the company's growth prospects. With targets set to reach 25 cities, acquire over 1.5 million subscribers, and achieve profitability within four to five years, Safaricom's ambitious plans are poised to reshape the telecom landscape in Ethiopia. The company's commitment to innovation, customer-centric services, and strategic partnerships sets the stage for a promising future in the Ethiopian market.