Ethiopia Lunch Brings Safaricom Shares Surge

Oct 8 , 2022


[ssba-buttons]

Last week’s launching of telecom services by the Kenyan-led consortium, Safaricom Ethiopia Plc, not only broke a century-old monopoly by a state-owned enterprise. The news brought good fortune to the company, seeing its share values surge after Ethiopian authorities announced that they decided to grant it a permit for mobile financial services. Ahmed Shidie, finance minister, told an audience gathered at Friendship Square on Thursday, September 6, that Safaricom’s M-PESA can operate in the Ethiopian market that has remained closed to competition for over 100 years. Safaricom became the first private operator in Africa’s largest telecom markets, with a population of over 100 million people. Safaricom's shares jumped more than six percent to 0.3885 dollars. "This was baked into the price," a Nairobi-based trader told Reuters. "I think it's a bit of a sugar rush, to last a day or two, and then we move back." A consortium of companies, including the South African Vodacom, the British Vodafone and Japan’s Sumitomo Corporation, won an operating license outbidding its contenders by offering 850 million dollars. Over a year in preparation, Safaricom Ethiopia switched its network in Addis Abeba last week, after piloting its services in 10 cities, mainly Dire Dawa. The company plans to cover no less than 14 cities by mid-next year. “We’re optimistic about how the technology and connectivity we provide contribute to a digital future and eventually transform people’s lives,” Safaricom CEO, Peter Ndegwa, said. The decision to allow Safaricom to begin mobile money service has not been in the initial deal, however. Anwar Soussa, CEO of Safaricom Ethiopia, pledged to roll out the service in three months. Safaricom is credited for being a pioneer in mobile phone-based money transfer, launching M-PESA 15 years ago. Almost half of the company’s revenues come from its mobile-payment services. “Safaricom’s success story is such an enduring innovation of how tech revolution is bypassing traditional barriers to deliver sustainable prosperity”, Kenya’s President William Ruto tweeted. Ruto attended the launch last week, making his first trip to an African country after his August election.


Radar

Bank of Abyssinia Signs Partnership with Droga Cooperative

Bank of Abyssinia has entered into a partnership agreement with Droga Health & Financial Savings and Credit Cooperative to provide financial support and services for its members. The agreement was signed yesterday at the Bank's headquarters. The deal aims to strengthen collaboration between the two institutions, enabling cooperative members to access tailored banking services. It was signed by Wosenyeleh Abera, Deputy CEO for Customer Relations and Marketing at the bank, and Zelalem Yilma...


Radar

Wegagen Introduces Real Time SWIFT Tracking

Wegagen Bank has launched a new mobile app feature enabling customers to track international SWIFT payments in real time. The bank is the first in Ethiopia to introduce an online SWIFT payment tracking system. By integrating SWIFT Global Payment Innovation, customers, particularly those involved in import-export trade, can monitor cross-border transactions using a Unique End-to-End Transaction Reference (UETR) directly from their smartphones. To use the service, customers select the SWIFT...


Radar

National ID, Zambia Partners to Expands Program Reach

The National ID Program has signed an agreement with Zambia's counterpart to provide consulting services for the development of software that will issue digital IDs. It is the first time the institution has extended its expertise beyond national borders, a sign of growing recognition for its rapid progress. Program officials described the partnership as a milestone in their effort to position themselves as a regional player in digital transformation. The collaboration is expected to center...