MTN versus Safaricom in battle for Ethiopia telecom licenses

Man holding a phone. Major reforms await Ethiopian consumers. FILE PHOTO MTN MEDIA

Addis Ababa, Ethiopia | THE INDEPENDENT | Bids have been opened, and it will be MTN Group and Safaricom that will participate in Ethiopia’s process to award two full-service telecommunications licenses.

“Pursuant to 33 of the tender regulations, qualified bidders are Global partnership for Ethiopia (Vodafone, Vodacom, Safaricom, Sumitomo and CDC Group) and  MTN International (Mauritius) Limited,” said the Ethiopian Communications Authority (ECA) in a statement released today.

The Ethiopian Communications Authority (ECA) has since its formation in September 2019 been engaged in an intensive effort to spearhead the telecom liberalization effort in Ethiopia.

The opening of the bids done on Monday, is the second last step in the bid process as ECA starts opening up the sector by facilitating the introduction of competition among local and international telecommunications operators.

Peter Gichangi and Philippe Vogeleer represented Vodafone and Safaricom at the bid opening, while MTN had Mzwamadoda Mtonsana and Remy Bloy.

Earlier, MTN Group in a statement confirmed their interest, with equity partners, in the bid for a telecoms licence in Ethiopia. Ethiopia is Africa’s second most-populous country which “represents the last and largest telco liberalization opportunity in the world.”

“Ethiopia provides the largest telecommunication and digital services growth opportunity in Africa over the medium term and fits into our pan-Africa focus and platform strategy. We are being guided by our capital allocation framework in our assessment of this opportunity,” commented MTN Group President and CEO Ralph Mupita, in confirming a MTN and Silk Road Fund equity partnership bid.

According to the Ethiopian government, the objectives of the telecommunications sector reform are “to expand reliable and accessible communications for all Ethiopians in order to enhance the economic and social development of the country and promote rapid economic transformation and growth.”

“Greater connectivity will lead to improvements in the quality of life for Ethiopians and maximize the opportunities presented by the digital economy,” the Ethiopian Communications Authority (ECA) said in a statement.

 

 

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