: Adani Energy Solutions partners with Kenya Electricity Transmission Company (KETRACO) to develop key power infrastructure in Kenya, marking the Indian conglomerate’s strategic expansion into East Africa. Despite past controversies, the deal signals major growth potential for Kenya’s energy sector.
By Charles Wachira

Indian billionaire Gautam Adani’s power transmission arm, Adani Energy Solutions, has taken a significant step into Kenya’s energy sector. The company recently inked a deal with the Kenya Electricity Transmission Company Limited (KETRACO) to develop, finance, and maintain key power infrastructure in the country. This partnership, a first for the Adani Group in East Africa, is set to bolster Kenya’s efforts to improve its electricity transmission capacity and meet growing energy demands. However, the deal also raises eyebrows due to past controversies surrounding Adani’s business practices and concerns about transparency.

The Significance for Kenya

For Kenya, the agreement with Adani Energy Solutions presents a much-needed boost to its power infrastructure. The country has been grappling with power shortages, frequent blackouts, and an aging grid that hampers industrial growth and investment. By partnering with Adani, KETRACO is looking to upgrade its transmission lines and expand capacity to handle more electricity from both renewable and conventional sources.

Kenya’s energy demand is projected to rise sharply over the next decade due to industrialization and urbanization, and this partnership comes at a critical time. The deal will help Kenya leverage private investment to improve its energy network, a key component of the government’s Vision 2030 economic blueprint.

In a statement following the signing of the agreement, KETRACO Managing Director Anthony Wamukota expressed optimism: “This partnership is a milestone for Kenya. We are aligning our energy infrastructure with global standards and taking a significant step toward improving the reliability and efficiency of power transmission in the country.”

Adani Energy Solutions will finance, construct, and maintain several key transmission projects. This includes extending transmission lines to remote areas and building advanced substations to improve grid stability, ensuring that more Kenyans have access to reliable electricity.

A Controversial Player

Despite the potential benefits, the deal has sparked concern among critics of the Adani Group, which has faced accusations of financial mismanagement and environmental violations in other markets. Adani’s business empire came under intense scrutiny in 2023 when U.S.-based short-seller Hindenburg Research accused the group of fraud and stock manipulation, causing a sharp drop in the value of Adani stocks. Though Adani has denied these allegations, the scandal led to increased scrutiny of its operations and governance.

Opposition figures in Kenya have raised concerns about the transparency of the deal with Adani, questioning whether the group’s controversial track record was adequately considered. Some have also pointed to potential environmental risks given Adani’s history with coal mining and power plants, which have attracted criticism for their impact on local communities and ecosystems in India and other countries.

Kenyan energy expert Michael Otieno remarked: “The entry of Adani Energy into Kenya could provide significant upgrades to our power grid, but it also comes with risks. We must ensure that the company adheres to Kenya’s environmental and governance standards, especially given the controversies surrounding its global operations.”

What the Deal Means for Adani

For Adani Energy Solutions, this partnership marks its formal entry into East Africa, expanding the company’s African footprint. The Kenyan project aligns with Adani’s broader strategy of investing in energy infrastructure in emerging markets. It allows the company to capitalize on Africa’s growing demand for electricity and play a role in shaping the continent’s energy future.

Adani has previously invested in Africa, with mixed results. In Egypt, the company invested in a solar energy project as part of the country’s push toward renewable energy. Meanwhile, in South Africa, Adani Group made inroads into the coal sector, though the venture faced stiff opposition from environmentalists and local communities due to concerns over pollution and displacement.

Despite these challenges, Adani’s ability to secure major energy projects in Africa underscores its growing influence. Kenya’s deal is particularly strategic for Adani, as it allows the company to tap into East Africa’s potential and position itself as a key player in the region’s energy transition.

Africa’s Growing Importance for Adani

Adani’s investments in Africa reflect a larger trend of Indian companies seeking opportunities on the continent, especially in sectors like energy, infrastructure, and technology. Africa’s growing middle class, coupled with its vast untapped resources, makes it an attractive destination for investors.

In Mozambique, the Adani Group has invested in coal mining operations, exporting millions of tons of coal to global markets. However, the venture has drawn criticism for its environmental impact and displacement of local communities. In Nigeria, Adani has been exploring energy sector investments, though these plans have not yet materialized on a large scale.

Kenya could serve as a springboard for Adani to deepen its presence in East Africa, where countries like Tanzania and Uganda are also seeking private sector partners to improve their energy infrastructure.

The Road Ahead

While the Adani-KETRACO deal could bring significant upgrades to Kenya’s power sector, the long-term success of the partnership will depend on transparency, environmental stewardship, and adherence to local regulations. Kenya has learned hard lessons from past public-private partnerships that failed to deliver expected results due to corruption, mismanagement, and lack of accountability.

Kenya’s energy future holds immense potential, but it will require careful oversight to ensure that partnerships like the one with Adani Energy Solutions deliver the promised benefits without repeating the mistakes of the past.

As Gautam Adani’s company makes its official entry into Kenya, it opens a new chapter in both the country’s energy ambitions and Adani’s expansion into Africa—a relationship that will be closely watched by stakeholders across the continent.

In the words of Adani Energy Solutions CEO, “This project is part of our commitment to developing sustainable, reliable, and efficient energy infrastructure across Africa. We look forward to contributing to Kenya’s energy goals and playing a role in its growth story.”

With high stakes and significant potential, the Adani-KETRACO deal is poised to shape Kenya’s energy landscape and drive broader discussions on the role of international players in the country’s development.

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: Safaricom’s M-PESA Global expansion into Ethiopia brings promising opportunities but faces key challenges such as regulatory hurdles, competition from Telebirr, low mobile money penetration, and infrastructure limitations. Overcoming these obstacles will be crucial for driving financial inclusion and cross-border trade

By Charles Wachira

Safaricom’s expansion of M-PESA Global into Ethiopia presents numerous opportunities, there are several challenges that both Safaricom and Ethiopia could face in this process: 

1. Regulatory Environment Government Regulations: Ethiopia has historically had a tightly regulated telecom and financial services sector, with the state maintaining control over key sectors. Although the country has begun opening up to foreign investment, navigating regulatory frameworks and ensuring compliance with local laws can be challenging. Licensing and Policy Delays: The Ethiopian government recently started liberalizing its telecom sector, granting Safaricom Ethiopia a license in 2021. However, delays or complexities in acquiring mobile money licenses, adjusting to new fintech regulations, and securing approvals for cross-border services could slow down expansion plans. 

2. Competition from Ethio Telecom’s Telebirr Local Competition: Ethio Telecom, the state-owned telecom company, has already launched its mobile money platform Telebirr, which has gained significant traction in the local market. Competing with an entrenched player backed by the government will require Safaricom to differentiate its services and offer compelling value propositions. Customer Loyalty: Convincing Ethiopians to switch from a well-known local brand to M-PESA may be difficult, particularly in a market where trust in financial services is still being cultivated. 

3. Low Mobile Money Penetration Financial Literacy and Trust: Ethiopia has relatively low mobile money penetration compared to other African nations. Many people rely on cash transactions and may not be fully familiar with mobile money systems. Building trust and educating users about the benefits of mobile money, especially for cross-border transactions, will be crucial. Slow Adoption in Rural Areas: A significant portion of Ethiopia’s population resides in rural areas where digital and financial literacy may be lower. Reaching and onboarding these populations will require extensive marketing, awareness campaigns, and potentially partnerships with local organizations.

 4. Infrastructure Challenges Limited Mobile and Internet Penetration: Although Ethiopia is rapidly improving its telecom infrastructure, many areas still lack reliable mobile and internet access. Poor network coverage in rural regions may hinder widespread adoption of mobile money services. Digital Infrastructure: Safaricom will need to invest in robust infrastructure to ensure smooth operations, secure transactions, and the capacity to handle increasing demand, especially as the service expands beyond major cities.

 5. Currency and Transactional Barriers Foreign Exchange Controls: Ethiopia has strict foreign exchange controls, and fluctuating exchange rates could pose challenges for cross-border transfers. Safaricom may face difficulties managing currency conversions and ensuring that cross-border transactions are cost-effective for users. Cost of Remittances: Although M-PESA is known for its affordability, remittance fees and conversion costs could still pose barriers for lower-income Ethiopians who rely on remittances from abroad.

 6. Cultural and Behavioral Barriers Resistance to Digital Financial Systems: In some communities, there may be resistance to adopting mobile money services, particularly where cash transactions are deeply ingrained in cultural practices. Safaricom will need to work to build trust and change behavior, showing that mobile money is safe, reliable, and convenient. Linguistic and Cultural Adaptation: Ethiopia is a linguistically diverse country with several ethnic groups. Safaricom may need to tailor its services to cater to various languages and cultural preferences, ensuring that marketing and customer support are accessible to all.

 7. Security Concerns Cybersecurity and Fraud: As mobile money services grow, they often become targets for cyberattacks, fraud, and financial scams. Safaricom will need to implement strong security measures and fraud detection systems to protect users from financial risks, ensuring the integrity of the platform. 

Regulatory Security Standards: Safaricom will also need to comply with Ethiopia’s security and data protection standards, ensuring that customer data and transactions are safeguarded, while aligning with international standards for digital financial services. Conclusion: The expansion of M-PESA Global into Ethiopia is a bold move with the potential to transform the country’s financial landscape, increase cross-border trade, and drive financial inclusion. However, Safaricom must overcome these significant challenges, including regulatory barriers, local competition, infrastructure limitations, and cultural hurdles. Successfully navigating these challenges will determine the long-term success of the service in Ethiopia, while opening the door to broader regional growth.

Keywords:Safaricom M-PESA Global: Ethiopia mobile money challenges: Telebirr competition: Cross-border financial services: Digital financial inclusion

: Safaricom Ethiopia to achieve full coverage in eastern Ethiopia by October 2024, marking a major milestone in its expansion two years after launch

By Charles Wachira

 Safaricom Telecommunications Ethiopia is set to achieve full coverage of eastern Ethiopia by the end of October, a crucial milestone for the telecom giant, which launched operations in the country just two years ago. This move comes as part of the company’s broader expansion strategy, which aims to provide nationwide service by the time its 15-year operating license reaches the halfway point in 2028.

Executives at Safaricom Ethiopia, the Ethiopian arm of Kenya’s Safaricom PLC, shared this development during a press briefing in Addis Ababa, emphasizing the importance of expanding telecom access to underserved regions. “We are proud to announce that by the end of this month, we will be offering complete coverage across eastern Ethiopia. This is a significant achievement for us, and it marks another important step in our journey to bring connectivity to all Ethiopians,” said Anwar Soussa, CEO of Safaricom Telecommunications Ethiopia.

Accelerating Expansion

Safaricom Ethiopia was awarded a 15-year license in May 2021 after paying $850 million, making it the first private telecom operator in the country, which had long been dominated by state-owned Ethio Telecom. By October 2022, the company had officially launched its services in Addis Ababa, serving about 1 million customers in the first month.

Since then, the company has been aggressive in expanding its footprint across Ethiopia’s vast landscape, where connectivity had long been a challenge, particularly in rural areas. Today, Safaricom Ethiopia boasts over 4.6 million subscribers across the country, with a focus on delivering affordable, reliable, and high-quality mobile services.

“Our commitment from day one has been to extend coverage to every corner of this beautiful country,” Soussa remarked. “Our investment is not just in infrastructure, but in the people of Ethiopia. We’re working hard to bring digital inclusion to all regions, including those that have historically been left behind.”

Economic and Social Impact

This expansion into eastern Ethiopia, a region with over 25 million people, represents more than just increased telecom access—it’s part of a broader effort to stimulate economic activity. Improved mobile connectivity is expected to enhance local businesses, foster mobile banking, and boost access to digital platforms that can transform sectors like agriculture and education.

According to figures shared by Safaricom Ethiopia, the company has invested over $1 billion in network infrastructure since entering the market. The deployment of 4G and 5G networks, in particular, is expected to drive data usage and enable faster, more efficient communication across the region.

“As we continue to build our network, we are also mindful of the socio-economic impact of our services,” Soussa noted. “Connectivity is key to unlocking new opportunities for businesses and individuals, and we are proud to contribute to Ethiopia’s digital transformation.”

Looking Ahead

Safaricom Ethiopia’s aggressive expansion plan aligns with the Ethiopian government’s ongoing liberalization of the telecom sector, which is seen as a catalyst for the country’s broader economic reforms. The government has indicated that it plans to sell a 40% stake in Ethio Telecom in the coming years, further opening up the market to competition.

By the end of 2024, Safaricom aims to have deployed over 5,000 network towers across Ethiopia, reaching a coverage rate of over 75% of the population. The company is also looking into launching mobile financial services in the near future, pending regulatory approval from the National Bank of Ethiopia.

As Safaricom continues its rapid growth, challenges remain, particularly in regions with difficult terrain and security concerns. However, the company remains committed to its long-term vision for the Ethiopian market.

“Our 15-year license is more than just an entry into a new market—it’s a commitment to Ethiopia’s future. We are here for the long haul, and we’re excited to see what the next decade brings,” Soussa concluded.

With full coverage of eastern Ethiopia imminent, Safaricom Telecommunications Ethiopia is on course to become a key player in the country’s telecom landscape, reshaping the way millions of Ethiopians connect and communicate.

Conclusion

Safaricom Ethiopia’s milestone of achieving full coverage in eastern Ethiopia by the end of October signifies not only the rapid expansion of the company but also a broader shift in Ethiopia’s telecom industry. With substantial investments and a vision for digital inclusion, Safaricom’s efforts will likely accelerate the country’s economic growth and digital transformation. The success of the company’s rollout will be closely watched, both within Ethiopia and across the African continent, as other nations consider similar liberalization efforts.

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