Login

Lost your password?

Sign Up

Register

Login

Login

Lost your password?

Register

Tuesday, May 24, 2022
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion

Africa's
Investment
Gateway

The Exchange
  • Login
  • Register
Subscribe
This Month's Edition
Previous Editions
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
LOGIN

Kenya: M-Pesa starts Ethiopia operations by May 2022

The Ethiopian state minister for finance Dr. Eyob Tekalgn Talino issued a statement confirming that they had decided to treat the two permit applications separately and De-linked the M-Pesa permit from the second operator’s license.

by Brian Misiati
February 12, 2022
in Ethiopia, Investing, Kenya
0
Share on FacebookShare on LinkedIn
  • Safaricom license that was obtained last year was due for upgrading to include other services like M-Pesa
  • M- Pesa, a mobile money transfer founded in 2007 by the Vodafone Group and Safaricom
  • Safaricom was waiting for directions from Ethiopian Communication Authority (ECA) to launch the M-Pesa services

Ethiopia is in the final stages of finalizing legal documentation which contains some changes that will see the Central Bank issue permits of operation and license to Safaricom, a giant telecommunication company for mobile financial services.

This is despite the country denying the telecommunication company a second telecoms operator permit, details of the initial agreement show that the Safaricom license that was obtained last year was due for upgrading to include   other services like M-Pesa, its mobile money transfer service once the bid for the second permit was put on the table.

The Ethiopian state minister for finance Dr Eyob Tekalgn Talino issued a statement confirming that they had decided to treat the two permit applications separately and De-linked the M-Pesa mobile money services permit from the second operator’s license.

Read: M-Pesa on course to become a US$1Bn business

Further details of the statement revealed that the money transfer services were due for launch in May this year and the suspension for the bid of a second telecoms operator permit was not in any way going to interfere with the services in the populous nation.

“Ethiopia will keep its promise to Safaricom from Kenya to allow its M-Pesa operations within our borders,” Said Dr Talino.

The M-Pesa menu. Many Kenyans are financially worse off over the last three years. www.theexchange.africa
The M-Pesa menu. The M-Pesa service rolls out in Ethiopia in May. [Photo/QZ]
Dr Talino also confirmed that talks and negotiations were still ongoing on how to best implement the second telecoms operator permit and the decision would be communicated in two months since options were still being interrogated to ensure that the right competitor was picked.

“We expect Safaricom to commence their M-Pesa operations this year and anticipate the economic revolution that the money transfer services will have in our” noted Talino

In May last year, a consortium formed to negotiate on terms of operations led by Safaricom managed to secure the first license which was limited and had no permits for services like M-Pesa.

Now the Horn of Africa Nation wants to put up another offer for a second operator permit after experts advised that the offer which was put up with the first one sold to Safaricom had not yet attracted the right bidder.

In 2018, Prime Minister Abiy Ahmed unveiled a comprehensive digital economy blueprint and now Ethiopia is liberalizing the telecoms sector to ensure the blueprint is implemented.

The sector was majorly monopolized by the state ethio telecom that attracted up to 4 million users in a short period of time after it launched its mobile financial services called Telebirr around the same time Safaricom obtained its license last year, showing the potential in mobile financial services for Money Transfer.

Read: How Safaricom will Transform the Ethiopian Economy – Kenyan President

Safaricom was waiting for the final words from Ethiopian Communication Authority (ECA) to launch the  mobile money services  into the wide potential market.

Confirming their activities towards the may launch, Dr Tolina said that the company has far built momentum as they have been very active in the country.

In May last year, the Ethiopian Communications Authority (ECA) said in a statement that the Global Partnership for Ethiopia has incorporated and registered its local company Safaricom Telecommunications Ethiopia PLC.

The license permits them to operate in the country for a fifteen (15) years renewable period and will operate under its original name Safaricom in offering the mobile money services  .

This is after Safaricom led other consortium members including the British development finance agency CDC Group and Japan’s Sumitomo Corporation in winning the $850 million bid to start its operations in the country.

M- Pesa, a mobile money transfer founded in 2007 by the Vodafone Group and Safaricom has shown immense growth under the rise of digital takeover and has recently hit 50 million users who actively transacts using the application.

The platform is currently spread across many African continents with users in Kenya, South Africa, Tanzania, and Democratic Republic of Congo, Mozambique, Lesotho, Ghana and Egypt wh have all embraced the mobile money services .

An M-Pesa services shop. [Photo/Nation]
It further has a network of partners whose collaboration allows subscribers to send and receive money from more than 200 countries and territories.

The launching of the M-Pesa supper app has also enabled its users to operate mobile money transfer easily and securely making it rise faster in the African continent.

For instance, access to financial services and products in Kenya grew by an astonishing 56 per cent between 2006-2019 due to the availability of the mobile money services . M-Pesa has been credited with lifting at least two per cent of Kenyan households out of extreme poverty.

Read: Ethiopia’s economy cannot hold with more conflict

Tags: EthiopiaM-Pesa licenseMobile moneySafaricom permitSafaricom services

STATE OF ECONOMY - GET THE REPORT

ASSESSING EAST AFRICA

Loading...

Brian Misiati

Journalist and Script writer, Environment and climate change enthusiast

Related Posts

www.theexchange.africa
Industry and Trade

Kenya’s hospitality sector performance improves thanks to international tourism

May 23, 2022
Angola: Huge Investment Opportunities in fossil fuels despite production decline in Africa. www.theexchange.africa
Investing

Angola: Huge Investment Opportunities in fossil fuels despite production decline in Africa

May 23, 2022
Investing

The business of Green Bonds in Africa

May 23, 2022
Next Post
Innovators installing solar panels as  an alternative source of Energy (Photo/Greenpeace)

Kenya: Manufacturers make savings ditching expensive energy

The Central Bank of Kenya had issued a discussion paper calling for views on digital currency. www.theexchange.africa

Kenya: Central Bank calls for views on adopting digital currency

Photo of the Tanzania Ports Authority twin tower buildings in Dar es Salaam Tanzania. TPA operates a system of ports serving the Tanzania hinterland and the landlocked countries of Malawi, Zimbabwe,Zambia, Democratic Republic of Congo (DRC).

Burundi: Tanzania railway increases minerals, agri-business investments

Please login to join discussion




This months edition

May Edition

Features

EdTech role in African development
Tech & Business

EdTech’s role in African development

by Kanyali Muthui
May 16, 2022
0

Due to the pandemic, the topic of innovation in education has never been more crucial.  While most developed countries moved...

Read more
investment in African science and technology
Tech & Business

Investing in Africa’s science and technology: Where are we now?

by Kanyali Muthui
May 16, 2022
0

The continent’s digital revolution can largely be driven by building the necessary skills for the short- and long-term future, and...

Read more
Fintech revolution in Africa
Tech & Business

The Fintech Revolution in Africa’s FX Markets

by Kanyali Muthui
May 11, 2022
0

With over 548 million registered mobile money users in sub-Saharan Africa, increased internet access and readily available mobile money solutions,...

Read more
www.theexchange.africa
Countries

US – Nigeria Trade Relations: An Overview

by Wanjiku Njugunah
May 2, 2022
0

Nigeria is currently the United States' 54th largest goods trading partner, with US$7.8 billion in total goods trade as of...

Read more
A previous conference for African Insurtech sector. The Insurtech boom is deepening insurance uptake in Africa. www.theexchange.africa
Tech & Business

Insurtech boom deepening the uptake of insurance in Africa

by june njoroge
May 2, 2022
0

Kenya-based Pula is another distinguished insurtech making waves in the continent. It provides small scale farmers with agricultural insurance and...

Read more

News

Banking
Industry & Trade
Investing
Money Deals
Regional Markets
Tech & Biz
Opinion

Countries

Kenya
Tanzania
Uganda
Burundi
Rwanda
Southern Africa
Ethiopia

More

My Account
Contact us
Advertise
About us
Help Center

Subscribers Center

E-paper
Premium Stories
Education Rates
Corporate Subscriptions
Weekely Newsletter

  • My account
  • About us
  • Advertise
  • Contact
  • Privacy Policy
  • Refund Policy – The Exchange
  • Sitemap

No Result
View All Result
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
  • Login
  • Sign Up
  • Cart

© 2021 The Exchange - Powered by MediapixManaged by Supported by Digihandler,

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In