Vodacom Group Limited has expressed its desire once more to venture into Africa’s fastest growing market, Ethiopia. The South African firm has eyed the state of the East African nation for some time and see it fit for the company’s expansion plans. The government of Ethiopia, under the governance of Abiy Ahmed, Prime Minister of Ethiopia opened up its state-owned telecommunications company for foreign investors to seize the business opportunities.
In the same manner, the Parliament opened its national flag carrier, Ethiopian Airlines – Africa’s largest airline – for foreign investors to be part of the running of the company. The new strategy saw foreign firms enquiring about other investment opportunities in the manufacturing sector, industry, and infrastructure as well.
Almost five months ago, South Africa’s mobile operator company hinted its interest in the telecom industry as it gears up investment plan to boost its earnings. The home situation is not looking promising as the recession of the economy is a worrying concern to many businesses and potential investors.
Leading communications company in Kenya, Safaricom also expressed interest in expanding its mobile money services in the Horn of Africa country. The M-Pesa services in Kenya have thrived in doing business, almost a daily requirement to most Kenyans. Last year, M-Pesa revenue increased by 14.2 percent to $614 million.
The attractive market in Ethiopia possesses a potential business investment opportunity to further e-commerce in the country. At the helm of management, Bob Collymore has set new records for the company that has stiffened competition for other mobile operators locally.
South Africa’s MTN Group as well was excited on the opening of the Ethiopian market, ready to expand its reach towards East African region. Vietnam’s state-owned telecom company Viettel as well could push its plans in Ethiopia with the competition getting stiffer in the telecom industry.