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

Korenti, Agelegel Microfinance Ink EV Financing Deal

Korenti Auto Trading PLC has signed a strategic agreement with Agelegel Microfinance to provide accessible financing options for electric vehicle (EV) buyers. The partnership seeks to ease EV ownership by offering fair pricing and loan packages with affordable rates. The initiative supports Ethiopia's push for clean transport and aligns with national sustainability goals. Korenti's managing director said the move reflects the company's commitment to expanding electric mobility. Customers can now...


Radar

NBE Leads Week-Long Bank Supervision Application Forum

The National Bank of Ethiopia (NBE) is hosting a week-long Bank Supervision Application (BSA) User Group meeting that began on July 7, 2025. The BSA system, developed by a pan-African consortium of central banks including the NBE, automates supervisory work for financial regulators. NBE will take over the rotating BSA chairmanship in September. Opening the session, Frezer Ayalew, Director of Bank Supervision, stressed the need for modern tools to handle growing regulatory demands amid cyberse...


Radar

Six Fuel Companies Banned, Seven Warned, Authority Noted Illicit Activity

The Ethiopian Petroleum & Energy Authority has taken disciplinary action against 13 fuel distribution companies for illegally trading 2.8 million litres of fuel outside the digital system in the past two months. Six firms face a one-month suspension from the fuel import and trading market, while seven others received final warnings and must rectify their operations within a month. Director General Destawe Mekwanant (PhD) said the companies failed to monitor fuel stations and ensure proper...