Little; the Kenyan ride hailing company is reportedly set to begin operations in the Ethiopian capital of Addis Ababa. It will be joining a number of other Kenyan companies including Safaricom that have begun to set up operations in the country and make headway in a market which was previously closed off to foreign companies.
The Chief Executive Officer (CEO) of Little; Kamal Budhabhatti while speaking to Business Daily Africa made it known that the company will be investing 5 million United States Dollars (around 540 million Kenyan Shillings) in the next five (5) years adding that it will based on its projections with regards to growth, be investing an additional 5 million United States Dollars (around 540 million Kenyan Shillings).
Little which currently has worldwide players like Bolt (formerly Taxify) and Uber as its competitors in Zambia, Uganda, Tanzania, and Kenya, will begin its operations in Ethiopia this July.
The company is looking to hire 2,000 drivers and will be targeting individual users as well as corporates. It also intends to setup a food delivery service as well as outside Addis Ababa which is the capital of a country of more than 100 million people.
The Chief Executive Officer (CEO) of Little; Kamal Budhabhatti while speaking during an interview on the 21st of July 2021 made it known that “Ethiopia has always been on our sight.”
The digital ride hailing company is the most recent Kenyan establishment to gain entry into the Ethiopian market. It is doing so just days after a consortium led by telecommunications giant; Safaricom secured a telecommunications operator license in Ethiopia a milestone which will potentially set up the company which is currently Kenya’s biggest telecommunications company, to begin its operations in Ethiopia a country with more than 100 million people.
The awarding of a new telecommunications license by Ethiopia to foreign companies has created an opportunity for its market to open to international investors for the very first time. A move which is reportedly a major part of the economic strategy of Prime Minister Ahmed.
Little’s Chief Executive Officer (CEO); Kamal Budhabhatti stated that, “When we saw Safaricom heading to Ethiopia, we got the courage to get there. It is a large market and we see an opportunity to extend our services there.
According to Business Daily Africa Little, will be entering into a partnership with Ethio Telecom which is being run by the Ethiopian Government. Ethio Telecom recently launched its very own mobile money service called Telebirr.
In the words of Little’s Chief Executive Officer (CEO); Kamal Budhabhatti, “We have some great Ethiopian partners. We felt that it is a very large market, and for us to succeed there, we need to work closely with Ethiopian companies who would bring a wealth of local and cultural knowledge.”
A number of businesses in the East African nation of Kenya have over the years, had their eyes on the potentially lucrative Ethiopian market as a result of the nation’s large population.
It is believed that the Kenyan businesses are attracted to the enormous potential for growth that the Ethiopian market possesses thanks in part to its population of more than 100 million which makes it a business opportunity that has to a significantly large extent, been untapped.
After the West African nation of Nigeria, Ethiopia is Africa’s second largest nation while offering numerous opportunities for business.
Ethiopia had in the past, kept the involvement of foreign companies in its economy at the barest minimum. Its recent economic reforms are however beginning to strengthen its new investor approach.
Ethiopia which is known as the Horn of Africa has in the past five (5) years, experienced a strong economic growth of an average of 10 percent.
Apart from its decision on the telecommunications sector the Ethiopian government in 2020 made it known that it has plans to also open up its aviation sector to private investors. It will be opening up the government logistics company as well as the monopoly in its electricity or power sector, to private investors too.
Its shares in Sugar factories in the country are being sold as well. Steps with regards to the opening up of the financial sector in the country, have also been taken.
The Kenyan establishments which according to Business Daily Africa are looking to gain entry into the Ethiopian market include KCB Bank Kenya Limited, Equity Bank, Stanbic Bank, Jubilee, as well as Cooperative Bank.
Little has stated that via its application, it will be possible for users gain access to transport services, corporate services, delivery services, medical services, and a wallet which will make it possible for users to buy airtime, send money, pay bills, as well as other functionalities.
The developing unrest in the Tigray region of Ethiopia has reportedly put the Tigrayan forces against the Ethiopian military force and its allies from Amhara, and its neighbouring nation of Eritrea. The unrest has already began to create worries over the investment climate in Ethiopia.
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