Safaricom declares $2.42 billion income, plans to launch industrial operations in Ethiopia this yr

Safaricom, the most important telecommunications supplier in Kenya, is ready to launch industrial operations in Ethiopia later this yr. This announcement was made by Safaricom CEO Peter Ndegwa whereas sharing the telco’s monetary assertion for the yr ended March 31, 2022 final week.

“We now have made our first check name, despatched [the] first check SMS and accomplished [the] first check information session,” Ndegwa mentioned on Twitter. “We now have a powerful crew of 300 workers with half of them being Ethiopians.”

Safaricom elevated its service income by 12.3% to KES 281.11 billion ($2.42 billion) and revenue by 13.5% to KES 109.13 billion ($940 million), in accordance with its newest monetary report. Voice service income grew by 0.8% to KES 83.21 billion ($720 million); cell information income grew by 8.1% to KES 48.44 billion ($420 million), whereas M-PESA income grew by 30.3% to KES 107.69 billion ($930,000).

Safaricom Ethiopia’s plans to deliver cell monetary providers to Ethiopia. Nevertheless, that is topic to the licensing and regulatory course of by the Authorities of Ethiopia.

Final yr, Safaricom joined efforts with Vodafone, Vodacom, Japan’s Sumitomo Corp, and UK’s CDC Group to safe the licence to function in Ethiopia at a price of $850 million, a landmark win because the second most populous African nation opened up its telecom sector to competitors.

This led Safaricom to arrange store in Ethiopia earlier this yr, however whereas the licence allowed the corporate to compete in opposition to state monopoly Ethio Telecom, it couldn’t supply M-PESA providers (its cell monetary service) attributable to authorized limitations.

In April, Ethiopia began altering its nationwide funds regulation to allow Safaricom to introduce M-PESA within the nation. 

In line with Enterprise Day by day Africa, the Nationwide Financial institution of Ethiopia (NBE) drafted a brand new invoice which included a clause that “Overseas nationals could also be allowed to put money into a cost instrument issuer or a cost system operator enterprise, or set up a subsidiary which shall be licensed as a cost instrument issuer or cost system operator.”

When the brand new invoice is signed into regulation, Safaricom will have the ability to compete with Telebirr, a cell service Ethio Telecom launched final yr that attracted 4 million customers inside its first month. Ethio Telecom has over 58 million subscribers, the best variety of subscribers by an African operator in a rustic. 

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