The leading telecommunications company in East Africa, Safaricom, has revealed its plan to make a formal bid for the Ethiopia Telco License. Safaricom is bidding for the highly coveted license as part of a consortium consisting of Vodacom Group South Africa, Vodafone Group Plc UK, CDC Group Plc UK, and Sumitomo Corporation (Japan).
The deadline for submitting bids is set for today 26th April 2021, and according to the Ethiopian Communications Authority (ECA), successful bidders will be announced within 30 days.
Safaricom is warning investors to exercise caution while trading its shares on the Nairobi Securities Exchange, as the telco giant awaits results from the bidding.
Kenya’s mobile operator is set to own a majority stake in the Ethiopian telco license if the consortium of five companies wins the bid. During an investors conference call, Vodacom Group CEO Shameel Joosub said that Safaricom will have 51% ownership in the Ethiopian telecommunications firm, Vodacom Group 5% ownership, while Vodafone Group Plc UK, CDC Group Plc UK, and Sumitomo Corporation will take the remaining share.
South Africa’s Vodacom Group said that it is keeping its options open in the Ethiopian deal, for opportunities that may arise.