Kenya's Safaricom, partners aim to start Ethiopia operations in 2022

A consortium led by Kenyan telecoms operator Safaricom aims to start operations in Ethiopia next year, it said on Monday, after winning a licence on Saturday. /AFP

A consortium led by Kenyan telecoms operator Safaricom aims to start operations in Ethiopia next year, it said on Monday, after winning a license on Saturday.

The consortium, which also includes South Africa's Vodacom and Britain's Vodafone, won the license with a bid of $850 million, government officials in Addis Ababa said on Saturday.

"The partners will establish a new operating company in Ethiopia which aims to start providing telecommunication services from 2022," they said in a joint statement.

Other partners in the consortium are British development finance agency CDC Group and Japan's Sumitomo Corporation.

Safaricom's shares rose almost 7 percent to 42.20 Kenyan shillings ($0.3911) at one point, though one trader had cautioned that the rally could be short-lived.

"This was baked into the price. I think it is a bit of a sugar rush, to last a day or two, and then we move back," the Nairobi-based trader said.

(With input from agencies)