Safaricom Telecommunications Ethiopia
 | |
| Safaricom Telecommunications Ethiopia | |
| Company type | Subsidiary of Safaricom |
| Industry | Telecommunications |
| Founded | 9 July 2021 |
| Headquarters | Addis Ababa, Ethiopia |
Key people | Anwar Soussa Chief Executive Officer and Managing Director[1] |
| Products | G.S.M related products and Mobile Money Transfer |
| Brands |
|
| Services |
|
| Website | Homepage |
Safaricom Telecommunications Ethiopia P.L.C. (STE), previously known as Global Partnership for Ethiopia BV (GPE), is a subsidiary of the Kenyan mobile operator Safaricom in Ethiopia,[2] licensed with fee of US$850 million on 9 July 2021.[3][4] This fee made it the single largest foreign direct investment into Ethiopia.[3][5] The firm roll out telephony services from 2022.[6][7][8]
History
[edit]Safaricom Telecommunications Ethiopia (STE) was licensed on 9 July 2021 with the aim of liberalizing Ethiopian telecom market. The company sought operating within nine months since its formation but was disrupted by local socio-economic and security factors. STE considered to be a major competitor of Ethio Telecom, who monopolizes the country's telecommunication system in local market and began planning investment $8 billion in the next ten years. In October 2022, the International Finance Corporation (IFC) sought to negotiate with STE with $160 million dollar in its capital expenditure to provide basic quality of the telecom services.[9][10]
In February 2022, STE completed the assembly of a Tier III, pre-fabricated data centre, that was manufactured in China. The data centre, which cost US$100 million, will be used to route voice, internet and network communications on the STE network and to store data. The data center is reported to be the size of a "shipping container"[11]
In April 2022, STE agreed in principle with Ethio Telecom for the latter to provide STE access to "cell sites, masts and other active elements such as network roaming". While the details have not been revealed as of 20 April 2022, a deal is imminent and an agreement is expected to be signed "soon".[12]
Shareholding
[edit]As of 25 May 2021[update], the shareholding of Safaricom Telecommunications Ethiopia was reported to be as follows:[6][13]
| Rank | Name of Owner | Country | Percentage Ownership |
|---|---|---|---|
| 1 | Safaricom | Kenya | 55.70
|
| 2 | Sumitomo Corporation | Japan | 27.20
|
| 3 | British International Investment | United Kingdom | 10.90
|
| 4 | Vodacom | South Africa | 6.20
|
| Total | 100.00
|
See also
[edit]References
[edit]- ^ Bonface Otieno (5 July 2021). "Vodacom DRC chief to head Safaricom's Ethiopian unit". Business Daily Africa. Nairobi, Kenya. Retrieved 18 July 2021.
- ^ "GLOBAL PARTNERSHIP FOR ETHIOPIA WELCOMES LICENCE AWARD TO OPERATE TELECOM SERVICES IN ETHIOPIA". 24 May 2021. Retrieved 25 May 2021.
- ^ a b "The Council of Minister of Ethiopia today announced accepting the $850 million license fee offer of Global Partnership for Ethiopia, a consortium of major international telecom service providers". 22 May 2021. Retrieved 25 May 2021.
- ^ karen (7 October 2022). "Safaricom Launches Operations in Ethiopia". Telecom Review Africa. Retrieved 6 April 2024.
- ^ "Global consortium wins Ethiopia's telecom license for $850M". 22 May 2021. Retrieved 25 May 2021.
- ^ a b Juma, Victor (25 May 2021). "Safaricom reveals ownership of Ethiopia venture". Retrieved 25 May 2021.
- ^ "ሳፋሪኮም ���ትዮጵያ አገልግሎት መስጠት መጀመሩን ይፋ አደረገ". BBC News. 6 October 2022.
- ^ "ሳፋሪኮም ኢትዮጵያ በአዲስ አበባ የኔትዎርክ አገልግሎት መስጠት ጀመረ". Special Broadcasting Service. 7 October 2022.
- ^ "Safaricom Launches Operations in Ethiopia". Telecom Review. 8 April 2024.
- ^ Reporter, Staff (22 October 2022). "Safaricom Shares To Go Down, As IFC Invests $260 Million". www.thereporterethiopia.com. Retrieved 8 April 2024.
- ^ Tesfa-Alem Tekle (23 February 2022). "Safaricom sets up first data centre in Ethiopia". The EastAfrican. Nairobi, Kenya. Retrieved 20 April 2022.
- ^ Kepha Muiruri (25 May 2021). "Safaricom to commence operations in Ethiopia next year". Citizen Television Kenya. Nairobi, Kenya. Retrieved 25 May 2021.
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