Safaricom Ethiopia Partners with Local Manufacturer to Expand Network

Safaricom Ethiopia has taken a significant step towards enhancing its network infrastructure by partnering with Addis Ababa-based Woda Metal Industry. The collaboration involves the use of 68 locally-made telecom towers, with 13 already delivered, to support the company's network expansion and serve its 4.4 million customers.

The initial order, valued at 50 million Birr, marks a move towards cost-effective and rapid deployment of cell tower infrastructure across Ethiopia. Woda Metal Industry, established in 2016, is a joint investment between China's Shandong Zhaowei Steel Tower and Japan's Alpha Business Services. The company is known for its high-quality towers, which are comparable to imported ones but at lower prices.

This partnership has broader implications for the development of Ethiopia's telecommunications infrastructure and economy. It could lead to improved connectivity, economic growth, and job creation in the region.

Wim Vanhelleputte, CEO of Safaricom Ethiopia, expressed confidence in the partnership, stating, "The quality of their towers is good; their galvanization plant is the biggest in Africa and their cost-effectiveness will enable us to expand our network more efficiently and effectively." This strategic move is expected to help Safaricom Ethiopia reduce infrastructure costs while maintaining high standards.

Safaricom Ethiopia has ambitious plans to expand its network coverage to 55% of the population by the end of June, up from 38% at the end of March. The company has already invested over US$850 million in enhancing its network across the country, with a total allocation of US$1.3 billion over the next five years. The goal is to build 5,000 new towers over the next three years, adding to the current 2,500 towers, which include 1,000 leased from Ethio Telecom.

Woda Metal Industry's involvement in this project is a demonstration of the capabilities of local manufacturers in Ethiopia. Steven Cui, CEO of Woda Metals, expressed his enthusiasm, stating, *"We're honored to be the first local supplier of telecom towers to Safaricom Ethiopia. "* This partnership is expected to boost domestic manufacturing and contribute to the economic growth of the region.

Safaricom Ethiopia's efforts to improve connectivity are vital for bridging the digital divide in the country. Vanhelleputte emphasized the company's commitment to this goal, saying, *"We are excited to expand our network and improve connectivity for millions of Ethiopians. This investment highlights our dedication to bridging the digital divide and driving economic growth in Ethiopia. "*

Despite facing challenges such as high inflation and political instability in the northern regions, Safaricom Ethiopia remains focused on its expansion plans. The partnership with Woda Metal Industry is a strategic move to mitigate these challenges by reducing infrastructure costs and leveraging local expertise.

Safaricom Ethiopia's collaboration with Woda Metal Industry marks a significant step towards enhancing network infrastructure and supporting local manufacturing. This partnership is expected to improve network quality, expand coverage, and contribute to the economic development of Ethiopia.

Key Takeaways

• Safaricom Ethiopia partners with Woda Metal Industry to use 68 locally-made telecom towers.
• The initial order is valued at 50 million Birr, marking a cost-effective move.
• The partnership aims to improve connectivity, economic growth, and job creation in Ethiopia.
• Safaricom Ethiopia plans to expand network coverage to 55% of the population by June.
• The company has invested over US$850 million in enhancing its network across Ethiopia.