Safaricom To Bid For Ethiopian Telecommunications Licence

Safaricom To Bid For Ethiopian Telecommunications Licence

Kenyan giant telecommunications company Safaricom has announced plans to bid for a telecommunications licence in Ethiopia.

This follows a request for proposals (RFP) issued on March 5 by the Ethiopian Communications Authority (ECA) for the award of two full-service mobile telecommunications licenses in Ethiopia.

“Safaricom PLC is a leading member of a consortium (the Consortium), consisting of Vodacom Group Ltd (South Africa), Vodafone Group PLC (UK), CDC Group PLC (UK) and Sumitomo Corporation (Japan), that intends to make a formal bid (the Bid) for the Ethiopia Telco Licence, and will be submitting its proposal to the ECA in accordance with the RFP,” said Safaricom company secretary Kathryne Maundu.

“For structuring purposes, the respective consortium members may invest through special-purpose investment vehicles.”

ECA had indicated that proposals from interested bidders must be submitted by April 26, 2021, and the successful bidders will be announced within 30 days, subject to timings subsequently advised by the ECA.

Safaricom has however warned its shareholders to exercise caution while trading shares on the Nairobi Stock Exchange in regard to the matter.

“Until further announcements regarding the bid process are made, the shareholders of Safaricom PLC and other investors are advised to exercise caution when dealing in the shares of Safaricom PLC, on the Nairobi Securities Exchange,” added Ms Maundu.

The development counters reports in February that indicated that Safaricom had been shortlisted for the licence, and that Ksh55 billion had been set aside for Ethiopian market entry.