Safaricom under the Global Partnership for Ethiopia has edged closer to clinching the Ethiopian telecommunications licence.
Under the consortium that consists of Vodacom Group Ltd (South Africa), Vodafone Group PLC (UK), CDC Group PLC (UK) and Sumitomo Corporation (Japan), Safaricom now faces only one competitor in the bid, the MTN Group.
In a statement dated April 28, 2021, the Ethiopian Communications Authority (ECA) said that only two bidders expressed interest in getting the licence.
“Pursuant to 33 of the Tender Regulations, Qualified Bidders are Global Partnership for Ethiopia (Vodafone, Vodacom, Safaricom, Sumitomo & CDC Group) and MTN International (Mauritius) Limited,” stated ECA.
“Pursuant to Articles 34 and 35 of the Tender Regulations, this list of Qualified Bidders is published on the ECA and the Ministry of finance websites and an invitation to the Opening of Financial Offers Meeting will be sent to Qualified Bidders.”
In a statement on April 26, Safaricom warned its shareholders to exercise caution while trading shares on the Nairobi Stock Exchange in regard to the matter.
“Until further announcements regarding the bid process are made, the shareholders of Safaricom PLC and other investors are advised to exercise caution when dealing in the shares of Safaricom PLC, on the Nairobi Securities Exchange,” said Safaricom company secretary Kathryne Maundu.
The Ethiopian government is expected to assess the bids within a one-month window and announce the successful firms by May.