Safaricom Submits Bid for Ethiopia Telecom License

Safaricom has formally submitted a bid for a telecommunication license to operate in Ethiopia.

The giant telco announced the move in a notice to its shareholders on Monday, saying it is making the proposal through a consortium.

The consortium is made up of Safaricom and its parent companies Vodafone and Vodacom, British development finance agency CDC Group and Japan's Sumitomo Corporation.

“The ECA has indicated that proposals from interested bidders must be submitted by 26th April 2021, and the successful bidders will be announced within thirty (30) days (subject to timings subsequently advised by the ECA),” Safaricom said on Monday.

The Ethiopia Communications Authority (ECA) said it will be awarding two operating licenses to multinational mobile companies next month.

The issuance of telecom licenses to foreign companies is part of Ethiopia’s efforts to liberalize its economy. 

Ethiopia, which has a population of 110 million people, has one of the world’s last closed telecoms markets.

Successful bidders will secure full operating licenses, but they will not be allowed to operate mobile phone-based financial services.

They will also be required to develop their own network infrastructure, such as cellphone towers.

As part of the liberalization, ECA is also in the process of breaking up the longstanding monopoly of State-run Ethio Telecom by selling a 40 percent stake in the operator.