African Tech Round-Up

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 mov