Introduction Safaricom Telecommunications Ethiopia Plc, a key player in Ethiopia’s telecommunications sector, has called on lawmakers to ensure equal market access and interoperability within the industry. The company’s executives highlighted the challenges posed by unequal tariffs and limited collaboration with competitor Ethio telecom, urging the Ethiopian government to take steps toward a more inclusive and liberalized telecommunications environment.
Equal Access to Networks: A Call for Change During a recent visit to Safaricom Ethiopia’s headquarters, members of the parliamentary committee for Democracy Affairs engaged with Wim Vanhelleputte, CEO of Safaricom Ethiopia. Vanhelleputte emphasized the importance of equal access to telecommunications networks, advocating for policies that allow customers to seamlessly use both Safaricom and Ethio telecom services.
Currently, Ethio telecom customers incur higher charges when making calls to Safaricom numbers, while Safaricom maintains a fixed rate regardless of the network. Safaricom’s Chief External Affairs Officer, Andualem Admassie (PhD), stressed the need to address these inconsistencies to promote fair competition and enhance customer convenience.
Interoperability in Digital Financial Services Another pressing issue is the lack of interoperability between Safaricom’s mobile money platform, M-Pesa, and Ethio telecom’s Telebirr. This limitation hinders seamless financial transactions, reducing the potential for greater digital financial inclusion. Vanhelleputte highlighted the broader implications, noting that monopolistic practices contradict Ethiopia’s aspirations for a liberalized economy.
“Monopoly is a contradiction to liberalization,” said Vanhelleputte. “If we truly aim to accelerate digital Ethiopia, policymakers must ensure equal access for all financial institutions to offer digital payment solutions.”
Expanding Digital Payment Options In a positive development, Ethiopia’s Ministry of Transport has approved the use of M-Pesa for fuel payments, expanding its utility within the country. However, Safaricom Ethiopia remains unable to use M-Pesa for tax payments, a restriction the company’s executives are urging the government to reconsider. Currently, Safaricom itself pays taxes using Ethio telecom’s Telebirr platform.
Government Engagement and Next Steps Ewnetu Aleneh, chair of the parliamentary committee, assured Safaricom of the government’s willingness to address these concerns. He committed to initiating discussions with the Ethiopian Communications Authority and engaging with the National Bank of Ethiopia to explore solutions that promote fair competition and interoperability.
Since commencing operations in 2021, Safaricom Ethiopia has achieved significant growth, amassing 6.1 million active registered customers and building a network that covers 46% of the Ethiopian population. These achievements underline the potential impact of an inclusive and equitable telecommunications framework in Ethiopia.
Conclusion Safaricom Ethiopia’s advocacy for equal market access and interoperability highlights critical steps needed to achieve a truly liberalized and inclusive digital economy. Addressing these challenges will not only benefit businesses but also enhance customer experiences and accelerate Ethiopia’s digital transformation.
