The Ethiopian government has cleared the way for Safaricom to introduce its M-Pesa service there, Business Daily reported. Balcha Reba, director-general of the Ethiopian Communications Authority (ECA), said the Safaricom Telecommunications Ethiopia licence will be upgraded to include mobile financial services, when the ECA completes bidding for the second telecoms operator permit. Bidding will be opened later in August. 

A consortium led by Safaricom secured the first licence, which does not have a permit for mobile financial services, in May. It will start operations in 2022, when Ethiopian authorities say the telecom firm will have the right to operate mobile financial services. According to Reba, what will be permitted for the second licensee will be permitted for the first licensee. The first and second licensee will have the chance to start providing mobile financial services at the same time.

The Ethiopian government sold only one of two full-service licences on offer in May, citing a lower-than-expected price for the second one, which it now wants to offer again. It is also preparing to sell a 45 percent stake in Ethio Telecom.

Source: Telecompaper.com