Safaricom surges after securing Ethiopia cellular monetary providers licence
Financial Service

Safaricom surges after securing Ethiopia cellular monetary providers licence

NAIROBI, Oct 7 (Reuters) – Shares of Kenyan telecoms operator Safaricom (SCOM.NR) surged greater than 9% on Friday after it secured a cellular monetary providers licence in Ethiopia, market individuals stated.

Ethiopia’s Finance Minister Ahmed Shide stated on Thursday his nation had given Safaricom the licence in certainly one of Africa’s largest telecoms markets as the corporate formally switched on the primary privately-operated community within the nation. learn extra

“It (licence) will convey the break-even interval ahead by roughly two years,” stated Lisa Kimathi, an funding analyst at Normal Funding Financial institution.

It might have taken Safaricom, whose companions embody South Africa’s Vodacom (VODJ.J) and Britain’s Vodafone (VOD.L), 5 years to interrupt even with out a cellular cash licence, however now it may take three years, Kimathi stated.

Safaricom’s primary competitor, the state-run Ethio Telecom, launched a cellular phone-based monetary service referred to as Telebirr final yr, to spice up development by providing cashless transactions.

Telebirr is now utilized by hundreds of thousands of subscribers however Kimathi stated Safaricom’s M-Pesa monetary providers platform may seize the lead.

M-Pesa was among the many world’s first cellular switch providers in 2007. It has since developed to a totally fledged monetary service providing funds providers, financial savings and credit score in a number of African nations.

Safaricom executives stated in addition they see big alternatives in Ethiopia to offer web entry.

Ethiopia’s telecoms trade is taken into account the massive prize in Prime Minister Abiy Ahmed’s push to liberalise the economic system after he took over in 2018, due to a big inhabitants of 110 million.

Abiy’s efforts to draw funding have, nevertheless, been broken by a battle within the northern area of Tigray, which has killed 1000’s and displaced hundreds of thousands.

Reporting by Duncan Miriri; modifying by Jason Neely, James Macharia Chege and Louise Heavens

Our Requirements: The Thomson Reuters Trust Principles.