- The European Commission (EC) had announced earlier its plans to scrutinise the proposed joint venture between Safaricom and its parent firm Vodafone for Ethiopia entry, over competition concerns.
- The EU has now cleared the proposal on grounds that the said JV will not pose any challenge to fair competition enabling Vodafone to join its partners for the Ethiopian entry.
The European Commission (EC) had announced earlier its plans to scrutinise the proposed joint venture between Safaricom and its parent firm Vodafone for Ethiopia entry, over competition concerns.
The EU competition watchdog had earlier raised concerns on the Ethiopia entry JV transaction raising the need for scrutiny within the scope of its merger regulation. It is mandatory for Companies operating within the EU to get clearance from the bloc’s watchdog for business activities such as acquiring other businesses and setting joint ventures in markets they operate in.
The EU has now cleared the proposal on grounds that the said JV will not pose any challenge to fair competition enabling Vodafone to join its partners for the Ethiopian entry. The Safaricom-led consortium includes British development
Safaricom announced last week that it is gearing up for Ethiopia commercial launch and announced a countrywide staff recruitment drive to build a team of 1,000 employees by June next year. A major challenge faced by Safaricom’s expansion plans to Ethiopia is the US State financier threat to recall its loans following escalation of armed conflict in the Horn of Africa nation that could affect the release of $500 million loans to the consortium.
