BY YOHANES JEMANEH
The diplomatic relationship between Ethiopia and Kenya dates back to 1954 when Ethiopia established its Honorary Consulate office in Kenya. But this relationship got a new momentum in July 1997 following the 31st Joint Ministerial Commission (JMC) meeting in which several MoU’s on economic, social and political fields were signed.
Moreover, during the 34th JMC meeting, which was held in Nairobi in November 2012 both parties agreed to elevate the JMC to a Summit level and signed the Special Status Agreement (SSA) with the aim of elevating the economic relations between the two countries to a higher level.
The information obtained from the Ministry of Foreign Affairs of Ethiopia (MoFA) indicated that the SSA gave special priority to trade and investment promotion, infrastructure development, food security, and sustainable livelihoods.
The economic cooperation between the two countries, therefore, has been gaining momentum through time in the sphere of trade and investment among others. The two nations have been undertaking various measures to create a suitable environment for economic cooperation of which facilitating infrastructure and legal frameworks are part of the endeavor.
In 2018, Ethiopia undertook a swift reform to liberalize its economy including telecommunications aimed at attracting more investment. This opened a golden opportunity for Kenya’s Safaricom to participate in bidding with other partners and won the uppermost share of the Ethiopian Telecom sector accredited for private owners in 2021.
On 29th August 2022, Safaricom, the Kenyan telecom giant began a pilot-faced commercial launch of its Network and services in Dire Dawa to ensure the provision of quality services. This has been followed by trials across eight other cities in various parts of the country. On the 6th of October, Safaricom Ethiopia launched its services in the capital city of Addis Ababa in the presence of Prime Minister Abiy Ahmed (Ph.D.) and Kenyan President William Ruto among other high government officials.
“It was just a little over a year ago when we signed the historic Telecom licensing agreement that has paved the path to our gathering here today the licensing agreement signed in 2021 came hot on the heels of a major policy shift Ethiopia has chosen our decision to liberalize the Telecommunications sector was anchored in the understanding that our ambitious economic growth strategy is reliant on leapfrogging Ethiopia into the digital era, Abiy said on the occasion.”
Expanding reliable connectivity in every corner of the country is not only essential for providing access to telecommunication; it is critical to address binding constraints in critical sectors like agriculture Health Care Logistics education tourism and Manufacturing.
“When designing our homegrown economic reform agenda we prioritize the ICT sector as one of the key drivers of economic progress since then we have gone far in implementing important Milestones including the launch of digital Ethiopia 2025,” Abiy noted. A strategy for Ethiopia’s inclusive prosperity that recognizes the value of the digital economy with a bargaining use population eager to innovate and create Ethiopia offers untapped potential and is already returned on investment in many sectors.
Expansions in the Telecom sector in particular will enable the growth of taking startups and insight into problem-solving innovations to mushroom. A well-planned and executed technology deployment that is accessible to millions of people has a catalytic effect in creating the necessary environment for our users to be the engine of our economy and they use their entrepreneurial skill to compete globally, the premier stated.
Ethiopia is on an unstoppable growth trajectory. The people have been working over the past four years to unlock the immense potential the country possesses as a nation. The international investment entities which have taken part in building network and data infrastructure are a testament that Ethiopia is an attractive investment destination for Global investors all the way from the United Kingdom to South Africa from Kenya to Japan.
These investments are also expected to ensure that knowledge transfer and local capacity building are at the core of operations. The liberalization provides an enormous opportunity for Ethiopia to leverage the technical and operational know-how of entrants into the market like the global partnership for Ethiopia so the management of Safaricom Ethiopia as you proceeds in fulfilling the licensed network coverage obligations in the specified duration. “I ask you to also accelerate the Smart City, digital education, and inclusion programs envisioned in all regions and dispense your corporate social responsibility in your new home,” Abiy stated.
Speaking at the occasion, President William Ruto expressed the event as a beautiful celebration of the character strength and promise of the deep relationship between Kenya and Ethiopia which dates back to six decades ago. It testifies to the deep brotherly ties exemplary neighborliness and effective partnership that has characterized the essence of the excellent special relationship between the two countries. It is a relationship that was forged by historic friendship and selfless collaboration in this freedom struggle that evolved into the nucleus which anchored Pan-African solidarity given that we are in this great city which remains the Glorious home of African Unity. It is, therefore, wonderful to witness the splendid transformation underway in Ethiopia which is integral to the momentum of progress taking place in the region.
An important characteristic of this transformation everywhere occurs is the convergence of critical dimensions of rapid sustainable progress aligned in ways that are impossible to ignore and appropriate to acknowledge and embrace. “This event is the culmination of a fruitful convergence between the local and the global. This bottom-up alignment lists a regional dimension thus a local company Safaricom Ethiopia came into existence when Kenya’s Safaricom attracted an international investment joint venture comprising organizations from South Africa, the United Kingdom, and Japan.”
When the government of Ethiopia resolved to liberalize the Telecommunications sector in 2018, it was inspired and determined to use the opportunity to harness the potential in bringing together the best of local regional are international strategic resources. It is also another key milestone among the two countries’ shared journey of progress underscored by many success stories in infrastructure development, cross-border trade, peace and security, and defense cooperation including diplomacy. “We are encouraged by this strong affirmation that the excellent tradition of neighborliness synergy shall continue and flourish,” President Ruto said.
Another way of appreciating this event is by considering the convergence of capital and technology which effectively unlocked the Ethiopian government’s vision of catalyzing economic performance by liberalizing its telecommunications sector through a highly strategic approach the launch of Safaricom Ethiopia, therefore, is a record-breaking event. It has attracted investments that will over the next 10 years rise to 10 billion USD thereby creating millions of direct jobs through the rollout of services and many more indirectly.
This will also make a tremendous contribution to the growth of national revenue. “We are also witnessing the culmination of a beautiful African event that should be replicated consistently throughout our continent,” he underlined. It is the convergence of resources and opportunity to develop transformational infrastructure that will unleash charges of prosperity that will uplift the two nations and also their people. Africa has come of age and it is time to configure strategies so that the economies attract global capital that will help deliver sustainable prosperity here at home.
According to Ruto, the telecommunications sector is one of Kenya’s biggest employers providing opportunities for millions of young people both directly and indirectly. It enhances the performance of every sector delivering improved services more efficiently and enhancing citizen satisfaction. This is good news for the government and the people at the Golden Age of productivity and prosperity is at hand powered by a robust ICT ecosystem harnessing innovation in the digital economy and financial technology.
He also congratulated Safaricom Ethiopia for seizing the opportunity to take full charge of emerging opportunities on the path to a destiny of abundance the promise behind Safaricom Ethiopia’s entry as the second national telecoms operator is already being felt. The Firm has so far recruited 460 Ethiopian staff and 50 graduate trainees to create the seminal talent cohort of digital innovators it is also working with regional universities to recruit an additional 100 graduates. This year 1500 Ethiopian businesses are working with Safaricom Ethiopia to develop supply chains and network landlords with intentions to expand these growing partnerships and supply chains throughout the country.
Expressing his self-assurance on the success of the telecom plc, Ruto said that he has been assured that the company is committed to providing commercial services in 25 cities and meeting its license network coverage obligations required by April next year. “I commend you my brother Dr. Abiy for steadfastly embarking on this Monumental Game Changer in Ethiopian and Regional infrastructure and ICT landscape. This is an emphatic signal that the African Unity of our time has come of age.”
A continent united by opportunity ended up with Pan-Africanism driven by trade and reliable connectivity. It is indispensable for competitiveness and the development of a world-class technological and innovative capacity.
“I am confident. therefore that your [Abiy’s] government will positively consider Safaricom Ethiopia’s pending request for a license to provide mobile money service within the existing national framework and for realizing your transformational vision in terms of the bold and exciting national 10-year perspective plan championed by your excellency and which is indispensable in unlocking new potential in Ethiopia,” he said. Safaricom’s participation makes this project the largest investment made abroad by a Kenyan company the new Safaricom will definitely strengthen Safaricom’s performance and Propel its Medium as well as long-term growth for our mutual benefit.
THE ETHIOPIAN HERALD TUESDAY 11 OCTOBER 2022
