Safaricom shareholders advanced the company’s plan to enter Ethiopia by ratifying the business established to manage what will be the nation’s first privately-run mobile operator.
At Safaricom’s AGM on 30 July, shareholders approved the creation of Safaricom Telecommunications Ethiopia from earlier last month. The operator explained in a statement the clearance brings the launch of commercial services in Ethiopia a step closer to fruition.
Safaricom Telecommunications Ethiopia is the company created by a consortium comprising the Kenya-based operator, Vodacom Group, Vodafone Group, Sumitomo Corporation and CDC Group.
The group received its final operating licence last month, as part of a move commenced by Ethiopian authorities in late 2020.
In Safaricom’s statement, chair Michael Joseph noted the company aimed to serve “our customers, staff and the community” in Ethiopia with a range of digital services.
Safaricom CEO Peter Ndegwa added Ethiopia was a crucial part of the company’s strategy to expand beyond Kenya, and pledged it would provide “quality and affordable mobile and internet connectivity”.