never too late to join the party, if still you don’t have safcom shares, go and buy them , Ethiopia has a population of 108m, mobile subscription s still low at 46m, if Safaricom can hack it and introduce mpesa there, i think it will be a game changer for subscription numbers,
Safaricom and its parent companies Vodafone Group Plc and Vodacom Group Limited have formed a joint venture – Global Partnership for Ethiopia — through which they are bidding for one of two telecommunications licences being auctioned in that country.
Safaricom had earlier said it was ready to take more debt in its role as the majority shareholder of the consortium with a 51 percent stake.
Vodacom has a five percent interest in the joint venture, with the rest of the ownership spread among unnamed strategic financial investors.
Safaricom sees Ethiopia, a market with more than 100 million people and relatively lower uptake of mobile and broadband services, as presenting significant growth opportunities.
They haven’t yet gotten the licence but it looks like its a matter of time. However there is significant risk the new licence maybe postponed because Ethiopia is betting on bid over $1 billion to issue the licence. That’s their target to save them from forex shortages that persists for the 7th straight year and a costly war in Tigray region that is draining their treasury.
Those who are bidding have set their bid at $500 million as max.
I think wewe ndo ulelewi, safcom Kenya will own, 51% of it, dividends payout will increase, share price will also increase, currently iko 33.50 bob, if they acquire it,market forces will make it rise as Ethiopia is seen as a ripe market for mpesa and other safaricom products., I would say it’s a win win for shareholders.