Safaricom Ethiopia suffered a loss of Ksh42.09 Billion in the year ending March 2024. It was announced by the company on Thursday.
Safaricom Telecommunications Ethiopia P.L.C. (STE), previously known as Global Partnership for Ethiopia BV (GPE), is a subsidiary of a Kenyan telecom company. Safaricom invested US$850 million in Ethiopia in 2021 to start its operations in Ethiopian telecom sector. This investment made it the single largest foreign direct investment into Ethiopia. The firm rolled out telephony services in 2022.
In the year ending March 2024, Safaricom Kenya’s profits increased by 13.7% to Ksh84.74 billion, but a loss of Ksh42.09 billion from Safaricom Ethiopia caused the group’s overall earnings to drop to Ksh42.66 billion. This marks the fourth year in a row that the company’s total earnings have decreased.
Despite loss suffered by the company in Ethiopia, the CEO of Safaricom, Peter Ndegwa, claims that from financial year 2025 onwards, Ethiopia will start contributing significantly to the growth of the company and accelerate its bottom-line performance.
This month the company announced that it aimed to triple its telecom tower network in Ethiopia in the next three years by investing over USD 1.5 billion to improve coverage across the country.
According to the Chief Finance Officer of Safaricom, Dilip Pal, the operations of the company in Ethiopia are expected to break even by 2025 and start contributing to the overall profitability of the group.
“I’ve gained valuable insights from this company about the detrimental effects of dishonesty on business. It’s evident that when a company engages in deceitful practices, it not only erodes trust but also undermines its reputation within the community. In Ethiopia, this company has experienced firsthand how the loss of trust can significantly impact its operations and relationships with customers and stakeholders. It serves as a poignant reminder of the importance of transparency and integrity in sustaining a successful business.”
International capitalists would have profited much if they invested in economic sectors that can reduce the cost of living for citizens’ instead of investing in sectors like telecom that skyrocket the cost of living. African capitalists are nothig more retiers.
I dont think international capitalists’ main priority is to reduce the cost of living for Ethiopian citizens. Profitability decides where they want to invest
Ethiopia 🇪🇹 is hell of Africa, don’t waste your resources on it.
Imagine it’s own citizens living in a remote world where there’s no international transactions.
USD rates vary by a half on black market and the offical ones.
No subscription to Spotify, No apple servers😢
It’s just hell
The working class are illiterates.
That so called Ethiopia is myopic and barbaric.
International capitalists would have profited much if they invested in economic sectors that can reduce the cost of living for citizens’ instead of investing in sectors like telecom that skyrocket the cost of living. African capitalists are mothig more retiers.
@ Unknown Legend?
Don’t be rude have litel +v.
There are many business including ETC they usually gets billions of profit from same market!
But your opinion. Is nothing to do with business…u concern is all about hate and hate!
There is nothing that you get from that!
Go to where you get treatment for your brain/mindset
!
5000