Month: October 2024

In October 2022, Safaricom launched its telecommunications services in Ethiopia, marking a major milestone as the first private operator to enter the Ethiopian telecom market. This move broke the long-standing monopoly of state-owned Ethio Telecom and was seen by many as a significant step towards liberalising the country’s telecom sector. The company had officially been licensed in July 2021, with a record $850 million licensing fee—the largest foreign direct investment in Ethiopia at the time. Safaricom committed to investing around $8 billion over the next decade to build its infrastructure and services, aiming to enhance competition and improve connectivity for millions of Ethiopians. However, Safaricom’s launch did not come without challenges. The rollout faced delays due to socioeconomic and security issues within the country. Initially planned for an earlier start, the company adopted a phased approach, beginning with services in Dire Dawa and targeting expansion to 25 cities by April 2023. That move reportedly saw significant infrastructure investments being made, including the construction of mobile towers and a national transmission network, alongside the importation of over $300 million worth of equipment. Episode overview: Fast forward to October 2024, in this episode of the African Tech Roundup Podcast, Yahya Banafa gives Andile Masuku a behind-the-scenes peek at the challenges and opportunities Safaricom is facing as it continues to establish itself in Ethiopia. He offers a practical perspective on building and deploying modern telecom infrastructure from scratch in a market that’s evolving rapidly. Key topics: • Planning and engineering a mobile network in a new market • Tackling Ethiopia’s unique terrain and altitude challenges • Balancing regulatory hurdles with business goals • Managing unexpected surges in data demand • Forming strategic partnerships within the telecom sector • Exploring the future potential of mobile money services • Optimising network coverage across diverse landscapes • Introducing 5G technology to meet growing demand • Meeting the digital needs of Ethiopia’s younger generation • Addressing competition from new market entrants like Starlink Notable points: Banafa delves into the complex process of network planning, touching on the importance of meeting both regulatory standards and service quality benchmarks. He explains how Safaricom has adjusted its approach to handle Ethiopia’s high-altitude regions and varied geography. The conversation reveals that higher-than-expected demand for data services has pushed Safaricom to accelerate its 5G rollout. There’s also a discussion about the potential of mobile money services in Ethiopia, with insights drawn from the success of M-Pesa in Kenya. Banafa stresses the importance of collaboration across the telecom sector to enhance the customer experience. Listen in for valuable insights into the strategic decisions behind Safaricom’s efforts to establish a cutting-edge telecom network in Ethiopia. It sheds light on how technology, regulations, and market dynamics intersect to shape the country’s digital future. Editorial Note: This interview was recorded at the fringes of NOVACOM Africa 1-to-1 Telco Summit 2024 in Franschhoek, South Africa, where Andile Masuku attended as an independent media guest. African Tech Roundup maintains complete editorial oversight and is not affiliated with the event organisers. Image credit: Gift Habeshaw