ADDIS ABABA Reuters - Kenya's Safaricom launched its mobile network in Ethiopia on Thursday, becoming the first private operator in one of Africa's largest telecoms markets.
Ethio Telecom has a monopoly in Ethiopia, Africa's second-most populous country, with an estimated 118 million people.
Safaricom Ethiopia switched its network and services in the capital Addis Ababa on Thursday after network pilots in 10 cities, it said in a statement.
Hours later, Ethiopia's finance minister, Ahmed Shide, said his government had granted the company a license to operate a mobile money service.
Safaricom Ethiopia CEO Anwar Soussa said the mobile money service would take two to three months to roll out.
Its network was due to launch in April but was delayed because of the coronaviruses and logistical challenges.
Safaricom Ethiopia plans to reach 14 additional cities by April 2023, according to a national network roll out.
"We are optimistic that the technology and connectivity we are providing will help to a digital future and ultimately transform people's lives," said Peter Ndegwa, Safaricom CEO.
Kenyan President William Ruto said the mobile money licence had not been agreed when he left Nairobi, Kenya's capital, on Thursday morning.
Ruto said he had a mission to come back with a deal. Safaricom launched the world's first mobile-based money transfer service 15 years ago, and the business, known as M-Pesa, has grown to account for about half of the company's annual revenue.
The government announced in March that it plans to partially privatise Ethio Telecom after Prime Minister Abiy Ahmed took power in 2018 but said it had decided to postpone the process because of economic challenges.
Ethiopia's telecoms industry is considered a big prize in Abiy's push to liberalize the economy.
Abiy's attempt to open up the economy to investment has been damaged by a nearly two-year long war in the northern region of Tigray, which has killed thousands and uprooted millions.
Abiy and Ruto were due to speak later on Thursday at Safaricom Ethiopia's official launch ceremony in Addis Ababa.