ADDIS ABABA -Due to its rich knowledge and technology packages the involvement of the Global Partnership for Ethiopia in the emerging telecom industry would have immense role in helping the country’s vision to build a digital economy, Ethiopian Communications Authority (ECA) said.
It is to be recalled that Safaricom-led consortium wins a license to nationwide telecom service and the group has paid 850 million USD for the ten-year permit. Global Partnership for Ethiopia is a consortium of Safaricom, Vodafone, Vodacom, Sumitomo, and CDC-UK’s development finance institution.
Approached by the Ethiopian Press Agency (EPA), ECA Director- General Balcha Reba ( Eng.) stated that the consortium would play a significant role in advancing Ethiopia’s digital economy apart from its engagement in providing world-class telecom services
The director-general also stated that the consortium’s arrival would bring new and efficient telecom services and its rich knowledge and expertise also contribute to Ethiopia build a competitive telecom industry and enhance its revenues from the sector .
“The consortium has great financial potential,” Balcha said, adding that member companies have a total annual turnover of more than 100 billion USD.
With over eight billion USD total investment over the next ten years, the consortium’s involvement will be the single largest FDI into Ethiopia to date. The investment is also expected to provide 1.5 million jobs to citizens in the next decade.
It was stated that the consortium will start providing telecommunications services by 2022.
“Since the investment license has been issued for 15 years, annual revenue and spectrum usage fee collected from the consortium will contribute to the country’s economic growth,” he elaborated.
Also, the consortium would conduct research on technology that is less common in companies in Ethiopia and establish a foundation to train university graduates and make them productive.
As to the director-general, the licensing process was credible and it was conducted in internationally recognized procedures, with the commitment and cooperation of the Ethiopian government.
During the bidding and evaluation of documents submitted by the consortium and one other international company to operate in the telecom sector, nine major criteria were set, taking into account Ethiopia’s population size and the country’s total landmass, as well as the quality of services that the country requires.
The main criteria were the number of customers the companies have, the size of the telecom infrastructures they manage, their ability to build telecom infrastructure for big country like Ethiopia, their annual income and profits. Moreover, the market share the companies have enjoyed in countries they operate, and other related issues are taking into consideration in the bidding process, Balcha elaborated.
It was learned that a nationwide telecom license would be awarded to another telecom giant in the coming months.
BY ABDUREZAK MOHAMMED