Telecoms giant Safaricom has announced that it will erect 13 cell towers in Ethiopia – its first batch received from Woda metal industry, an Addis Ababa-based tower manufacturer.
- Safaricom Ethiopia had initially ordered 68 cell towers at a cost of 50 million Birr from the local manufacturer as part of its commitment to promote the nation’s industries alongside strengthening its customer base.
- Early this month, Safaricom unveiled plans to invest US$ 1.5 billion to accelerate its network coverage in Ethiopia by building 5,000 new towers in the next three years.
- Safaricom currently operates about 2,500 telecommunication towers, with about 1,000 of them leased from Ethio Telecom.
“The quality of their towers is good; their galvanisation plant is the biggest in Africa and their cost-effectiveness will enable us to expand our network more efficiently and effectively,” said Safaricom Ethiopia CEO, Wim Vanhelleputte.
Vanhelleputte lauded Woda Metal Industry for producing high quality towers similar to the ones the Telco used to import, but at lower prices that would enable rapid deployment of cell tower infrastructure across the vast nation.
The company’s operations in Ethiopia have been capital intensive due to high inflation and political instability in the northern regions of the country. Reducing infrastructural costs while maintaining quality could drive Safaricom Ethiopia into profit territory in Q2.
Woda Metal Industry was registered in Ethiopia in 2016 after a joint investment of US$ 65 million by China’s Shandong Zhaowei Steel Tower and Japan’s Alpha business services. It also manufactures cell towers for Ethio Telecom as well as power transmission towers.
“We are excited to expand our network and improve connectivity for millions of Ethiopians,” said Wim Vanhelleputte, CEO of Safaricom Ethiopia. “This investment underscores our dedication to bridging the digital divide and driving economic growth in Ethiopia,” said the Telco in a statement.
Safaricom’s network in Ethiopia by the end of March this year covered only 38% of the population. The company is looking forward to expanding that figure to 55% by the end of June this year.
The company has already spent more than US$ 850 million in ramping up its network across the country. This is a significant chunk of the planned US$ 1.3 million that Safaricom capped for investment in Ethiopia over the next five years.
Since its launch in Ethiopia in 2022, Safaricom has a market share of about 4.4 million people by the end of Q1.
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