Safaricom to set up new companies in growth push

Safaricom PLC wants shareholder nod to set up three new companies that will expand into mobile business in Ethiopia and an incubator for tech start-ups and SMEs.

The company has asked shareholders to approve the special business orders to be reviewed in the company’s AGM scheduled for 28th July 2023.

The telco giant incorporated a new company in Ethiopia, Safaricom M-PESA Mobile Financial Services PLC, to house the M-PESA business in Ethiopia and now want owners to approve the subsidiary. The Ethiopia outfit will be a fully owned subsidiary of Safaricom Ethiopia Telecommunication and ultimately a resultant subsidiary of Safaricom PLC.

This came as a result of Ethiopia’s legislation which didn’t allow a Telco company to provide financial services thus the incorporation of the above-mentioned subsidiary which was recently granted the $150 million license to roll out the highly appreciated mobile financial services.

Read also: IFC secures stake in Safaricom Ethiopia

The other two proposed subsidiaries are as a result of the firm’s commitment and support to the startups, SMEs and MSMEsin the country and within the region.

Safaricom is looking to incorporate a company that will be limited by guarantee which will invest in seed stage startups to support the development and growth of technology entrepreneurs and build a reputation of trust within the tech community here in Kenya.

The last subsidiary the firm would like to establish would be the incorporation of a private limited company or alternatively look to repurpose an existing subsidiary that will invest in growth stage startups /scale-ups and initiatives that enable the achievement of Safaricom PLC’s strategic mission for a financial profit.

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