Tough lessons from Safaricom’s Ethiopia entry

From Left: CEO of Safaricom Telecommunications Ethiopia PLC Wim Vanhelleputte, CEO of Safaricom PLC Peter Ndegwa and Chief Finance Officer Dilip Pal. 

Photo credit: File | Nation Media Group

Foreign investor interest in Ethiopia's telecoms sector is cooling, sector experts and those with knowledge of the licencing process say, pointing to a bumpy first two years operating in the country for Safaricom, the only company so far granted a licence to compete with state-owned Ethio Telecom.

Telecoms were once seen as the big prize of a drive to liberalise the economy of Ethiopia, Africa's second most populous country with around 120 million people, launched after Prime Minister Abiy Ahmed took power in 2018.

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