Friday, April 3, 2026
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ECA refutes Safaricom’s deadline extension claims

Still no new service will be operational before July

Ethiopian Communication Authority (ECA) refutes the claim of extending the deadline for the commercial launching date of Safaricom Ethiopia.
Safaricom Ethiopia fails to meet its agreements with the Ethiopian government which was supposed to be in early April, which Safaricom was supposedly starts its commercial launch.
As sources had explained to Capital, the authority was signaled to have extended the commercial launching deadline verbally for Safaricom to July, 2022. However, the authority through its letter sent to Capital has clarified that it has by no means extended the date.
Based on the agreement with the government and its license operation, the new telecommunications entrant was supposed to start after nine months following its license award, but that has faced setbacks in the timeline.
In response to Capital’s query regarding its operation, last week Safaricom Ethiopia stated that; “We are continuing preparations for our commercial launch in 2022. An important part of this, as announced is reaching in principle agreement with Ethio Telecom on interconnection, transmission capacity and tower and power-sharing.”
Safaricom had announced that it completed building its own network, customer handling system and test calls in various cities, including Addis Ababa, Bahir Dar, Hawassa, Dire Dawa and Harar. And as sources from Safaricom had indicated, the telecommunications firm was to start its operation after inking the agreement with Ethio telecom in order for the agreement to become operational.
Safaricom Ethiopia is said to rely on Ethio Telecom’s infrastructure in order to offer its services to users. In its response, the company has also indicated that both companies are working towards concluding these agreements in accordance with the regulatory framework overseen by the ECA.
Accordingly, as sources from Ethio telecom explain, preparing the agreement needs a lot of work and even if the two parties sign the agreement within a short period, it will take at least 3 or up to four months for the deal to be operational.
On Wednesday, April 13, 2022, the two companies expressed that they have successfully concluded multi-round negotiations together with the regulator, ECA, on infrastructure sharing and interconnections, with agreements to be signed soon.
The agreement is said to last for 10 years on infrastructure sharing and interconnection. Severe disagreements had earlier arisen between the two companies regarding the price and currency of payment and under this agreement, the payment will be in both currencies, with varying ratios across the infrastructure type.
The agreement in principle with Ethio telecom was announced barely a month after the telecom operator signed an infrastructure-sharing agreement with the state-owned Ethiopian Electric Utility (EEU) to deploy its aerial fibers.
Safaricom Telecommunications Ethiopia, which won an operating license in Ethiopia in May 2021, has commenced works for telecom expansions in the country. Safaricom Ethiopia which is formed by the amalgamation of Safaricom, Sumitomo Corporation, CDC Group and Vodacom secured operational license from the government to officially do business in Ethiopia as a second telecom company after the state-owned Ethio Telecom.
Safaricom, which paid 850 million dollars for a 15-year license, is moving ahead with its infrastructure development project, having contracted Huawei and Nokia for its network development.
Capital’s efforts to reach out to Balcha Reba, Director General of ECA, for further comments on the issue have been unsuccessful.

EHPEA holds event to flourish its sector

The Ethiopian Horticulture Producer Exporters Association (EHPEA) hosts a sectoral promotion event to revamp the sector’s potential.
During the promotional conference held at the Inter Luxury Hotel on Thursday, April 28, the federal and regional investment officials turns to highlight the potential the country has in horticulture and other agricultural investments, whilst potential investors, ambassadors and other members of the diplomatic community sat in attended.
At the conference representatives of the Ethiopian Investment Commission and Ministry of Agriculture explained the government’s readiness to tap the sector investment potential. They elaborated that the government is creating an additional conducive environment for investors to invest in Ethiopia.
Regional investment bureau officials gave an inside view of the potential that the country has for the sector investment and equally responded to the questions raised by participants.
Tewodros Zewdie, Executive Director of EHPEA, said that although it is a little over a decade since Ethiopia started an organized endeavor to have a modern horticulture export industry; the sub-sector has shown quite glittering and exponential growth in the last ten years.
He added that since 2004, the Ethiopian horticulture export has skyrocketed by about 25-fold to become one of the top three hard currency generators from export and second in agricultural export only to coffee.
Tewodros added that the industry continues to be very dynamic, where growers are constantly improving sustainability through the adoption of environmentally friendly technologies and energy-efficient systems.
“Ethiopia has both competitive and comparative advantages for the production and export of horticulture produce as the cost of doing business is cheaper in comparison with other countries,” he said in his opening remark at the conference by adding energy cost is among the cheapest in the world and suitable climatic condition in the country besides its proximity for global market and strong logistics scheme like the wide destination of Ethiopian Airlines.

DECLINING ENTREPRENEURIAL DYNAMICS

We need to rethink ‘entrepreneurship’, particularly within the context of developing countries, where homegrown entrepreneurship is still a potential not an actuality, despite the numbing rhetoric to the contrary! If truth be told, the world driven by monopoly capital hardly allows national bourgeoisie to emerge in the various other nation states. The only way to ameliorate this deficiency, if it is at all possible in the current scenario, is to try to leverage the ‘developmentalist state’ to the full extent. To bring about some kind of balance in the lopsided global market, the traditional anti market, the state, must be revitalized in ways that might sound radical, at least from the point of view of reigning neoliberalism!
The global regime of monopoly capital, facilitated by the strong states of the industrially advanced economies, has effectively killed entrepreneurship not only in the developing countries but all across the globe. What now passes for entrepreneurship is usually some kind of crony capitalism, explicitly favoring the power connected at the expense of creative and dynamic entrepreneurial dynamism! In many parts of Africa, it is mostly state supported enterprises, whether traditional parastatals (government) or paraparties (political parties) or the multitude of connected individuals directly/indirectly fronting for the power that be, that seem to be fully engaged in large scale economic/business activities. The current global scenario is such that; small time operators don’t have a fighting chance to make it to the big league, unless they have either the backing of the national state or are a mere appendage of transnational/monopoly capital. The rhetoric or even the actual presence of small enterprises in an economy is just to give a semblance of dynamic market activities, a charade that is now fast unraveling!
The world of the rich (OECD) is undergoing tumulus political change, mostly due to polarization brought about by the entrenched regime of crony capitalism! In this inequality perpetuating machine/scheme, certain institutions play prominent role. For instance the finance sector, without a doubt, is one of the main culprits that is fostering all-round injustice, hence instability across the planet, to say nothing about its callous destruction of the natural world! Even though the unsustainability and undesirability of the current global economic regime is very clear to the sheeple, politicos of nation states are refusing to look at options, which might possibly pacify the excessive greed that is causing untold destruction, both in the world of humans and nature. The political tumult we are witnessing in the West is a manifestation of creeping insurrection that will probably engulf all of us, sooner than later. We believe the best option for incumbent states is to boldly and honestly address existing and impending problems in collaboration with their respective sheeple! ‘Kicking the can down’ might not do the trick any more. To this end, the commanding heights of a country’s economy must be under the common will of the sheeple and not with the ever-conniving stealing oligarchs. In this context, all financial institutions must be more than regulated, as their business is dealing with one of the main ‘Commons’ (of societies), just like the water we drink, the air we breathe, etc. For example, the ‘Birr’ is our common currency and it should not be dispensed freely to the selected few under various disguise, (so that the connected can convert the allotted money into new wealth, mostly by disfranchising the old, rather than create new ones on their own) while the majority has to sweat for it.
In addition to efforts to salvage aspects of the broader economy, the whole ‘social machinery’ must also be redirected to more ‘value oriented objectives’. Making money only for the sake of making money is a meaningless pursuit, at least to those with some grain matter upstairs. Here is an extract about money from once the richest man on earth. Warren Buffett is a simple man, with just one caveat and is the subject of an HBO documentary, titled Becoming Warren Buffett, that explores his lesser-known personal life. But his daughter Susie Buffett warns not to expect anything extravagant from the successful Berkshire Hathaway investor. ‘He’s pretty boring – it’s just not what people expect,” Susie tells PEOPLE of the most surprising thing about her dad. “I think it’s also probably surprising to people that the money doesn’t matter to him. He made the money sort of by accident because he was really good at doing what he loved, and when you do that particular thing really well, you end up with a whole bunch of money. But it’s really true that he does not care about having a bunch of money. Buffett echoed his oldest child’s sentiments at the film’s premiere, telling PEOPLE that it’s not that he’s frugal, he just doesn’t think spending money will make him happier than enjoying the simple things in life.’ I buy everything I want in life,” Buffett said. “Would 10 homes make me more happy? Possessions possess you at a point. I don’t like a $100 meal as well as a hamburger from McDonald’s. That’s the way I’m put together, I don’t equate the amount I spend with the enjoyment I’m going to get from something.’
Money is only a means and not an end onto itself. Societal relations must not only hinge on this superficial construct, excessively propelled by un-tempered greed of late modernity. Unfortunately, distorted attitude towards money has now come to dominate public life in many of the traditional societies of Africa, Ethiopia not excepted! A country that has sacrificed a whole lot to bring about an ethical and just society (The Great Ethiopian Revolution of 1974) is now wallowing in a cesspool of narcissistic greed, corruption and widespread injustice, facilitated by degenerate polity in partnership within notorious oligarchs, both foreign and locals! As a result of this ill spawning taking place throughout all the regions of Ethiopia, resistance in form of mass uprisings seem to become the order of the day. We sincerely believe certain things are way beyond repair in Ethiopia and they must be completely dismantled with a view to effect a more transparent and equitable governance. Trying to sweep all major problems (along with the sheeple’s grievances) under the rug might not cut it anymore!

Gov’t, society’s reckless spending heaps inflation, EEA study reveals

New study recommends the government to control its squandering spending as part of mitigating the inflationary behavior whilst reviewing the levy on import commodities is hinted as an additional input to price stabilization.
The study conducted by the Ethiopian Economics Association (EEA) under the title: ‘The Ethiopian Economy: Structural Constraints, Inflation, and Policy Options’ highlighted the current challenge in the market with possible way forwards to ease the circumstance.
The study that uses resources from government offices and international organizations said that the slowdown and drop down in some pillar economic sectors have been observed for the past close to a decade from the growth trajectory in the first ten years of the millennia.
The EEA, through its study flashback, showed that the agricultural sector has fizzled by half from 60 percent contribution to the GDP in 1990, while the industry sector has shown ups of two folds to about 30 percent as that of the service sector, which stands at the top, takes 40 percent of the GDP contribution, up from 30 percent in the past.
“The growing trend on the services sector for the share on the GDP is an indication that the economy in general is in structural challenges,” the statement that EEA issued by referring to the study outcome said.
Production volatility and sharp reduction in some agricultural products’ productivity was also revealed on the document. This is also similar to industrial production increments up until 2010, which then started reducing from 2016.
The reduction on the supply side whether locally produced or imported items has contributed to the inflation.
It said that different researches indicated that the growth of industry and service sectors in Ethiopia is contributing to the price hikes, while the growth of agricultural sector productivity with additional factors played a key role to stabilize the market.
The drop of birr’s purchasing power against international currencies and devaluation was also stated as one of the factors to ballooning the inflation.
The study revealed that Ethiopia was one of the top ten African countries which amass significant revenue from import-export taxes and it seats at the fourth level by imposing huge customs duties.
As per the study, imposing a massive levy on import items and expanding tax revenue yield higher chances in contributing to inflation.
EEA’s research also identified that the growth of export trade might fuel the price hike, “due to that it explained that proper policy thinking and direction is crucial to balance it.”
Of the top ten countries in Africa that have poor export performance, Ethiopia stands at the third level.
Regulating the money supply and monetary policy based on the market was recommended as a basic principle for the issue.
However, in its recommendations, the study said that reckless spending from the government and society, in general, should be corrected as an alternative to keep the galloping inflation. While it gives priority to agricultural productivity by emplacing proper support for smallholder farmers, which are the major source of agricultural products in Ethiopia. Improving power usage was also among the suggestions put forth.
Even though the government is a crucial body in introducing and applying different policy instruments to tackle the challenge, external support has also been stated as essential.
It study suggested that even though the government remains the major player on the issue, the formation of supporting an independent body is vital to curb the challenge.
It recommended for the formation of a board, supply and price stabilization board, as an independent body to support the government.
EEA study added that the role of the board will be providing support for trade balance administration, providing policy recommendations as per a detailed evaluation of the circumstance, and coordinating different relevant bodies.
Playing a role to stabilize the market or at least setting maximum inflationary points if curbing the inflation is not fruitful was also stated as an area where the board can contribute.