13th Sep 2021 12:01
(Alliance News) - Vodacom Group Ltd on Monday said its international consortium of partners were awarded a mobile telecommunication licence in Ethiopia.
"The license unlocks a unique opportunity for the consortium to build out world-class services in Africa's second-largest country by population, providing a compelling long-term growth vector for Vodacom and Safaricom. Furthermore, the investment in Ethiopia enhances Vodacom and Safaricom's geographic diversification," Vodacom said.
The Ethiopian venture was first announced in May.
Following the awarding of the licence, the consortium has created a new operating company in the east African country, called Safaricom Telecommunications Ethiopia PLC.
The consortium includes Kenyan communications firm Safaricom PLC; Vodacom; UK-based communications company Vodafone Group PLC; Sumitomo Corp, one of the largest international trading and business investment companies in Japan; and CDC Group, a UK-based development finance institution and impact investor. Safaricom is a subsidiary of Vodafone.
Safaricom own a 55.7% stake in the new Ethiopian subsidiary; Sumitomo a 27.2% stake; CDC Group a 10.9% stake; Vodacom a 6.2% stake; and Vodafone a nominal stake.
Vodacom shares were up 0.9% to ZAR136.29 each in Johannesburg on Monday afternoon. Vodafone shares were 1.0% higher at 117.90 pence each in London on Monday around midday.
By Greg Roxburgh; [email protected]
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