Breaking News

Safaricom shareholders approve Ethiopian subsidiary

August 2, 2021

Safaricom shareholders have approved the telco’s proposal to set up its Ethiopian subsidiary—Safaricom Telecommunications Ethiopia Plc—that is expected to start operations next year.

The subsidiary was set up early July after the consortium—The Global Partnership for Ethiopia—led by the Kenyan-based mobile phone operator was awarded the permit to operate telecommunication services in Africa’s second most populous nation.

The consortium brings together Vodacom Group, Vodafone Group, Sumitomo Corporation and CDC Group.

Safaricom appointed Anwar Sousa, the former Managing Director of Vodacom Democratic Republic of Congo (DRC) and the Chairperson of Vodacash (MPesa), as the managing director of its Ethiopian operations effective July 1, 2021.

Mr Sousa will report to the board of directors of the Safaricom Telecommunications Ethiopia Plc and Peter Ndegwa, Safaricom Plc Chief Executive.

The companies from Kenya, South Africa, Japan and The United Kingdom have proven experience in telecommunications with large-scale network deployment capabilities, operations and service provision.

Safaricom Telecommunications Ethiopia Plc is expected to create digital transformation to positively impact the economic and social lives of Ethiopia which is home to over 112 million people.

Speaking at Safaricom’s 13th Annual General Meeting last week, Michael Joseph, Chairman of the Board, expressed confidence in the company’s ability to build a top-quality mobile network that will enable Ethiopia to access a world-class array of digital services.

“The board is committed to working with management to deliver value to our shareholders but, most importantly, to ensure we continue to be there for our customers, staff and the community, especially in this new phase,” Mr Joseph said.

The shareholders also approved the final dividend of Ksh36.8 billion ($340.74 million) translating to Ksh0.92 ($0.008) per share that will be payable on or before August 31, 2021.