Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Kenya's Safaricom will consider Huawei for 5G, despite U.S. concerns

Published 02/20/2020, 07:18 AM
Updated 02/20/2020, 08:00 AM

(SOUNDBITE) (English) SAFARICOM ACTING CHIEF EXECUTIVE OFFICER, MICHAEL JOSEPH, SAYING:

"I don't think America is going to tell us what Kenya should or should not do."

Kenya's biggest telecoms operator Safaricom will consider awarding a contract to China's Huawei as it rolls out its fifth generation, or 5G network this year even as the United States has been urging its European allies not to use Huawei, citing security concerns.

So says Safaricom's acting chief executive Michael Joseph.

(SOUNDBITE) (English) SAFARICOM ACTING CHIEF EXECUTIVE OFFICER, MICHAEL JOSEPH, SAYING:

"We will use Huawei in 5G, but you know the answer you are trying to make me give you is what will we do in terms of the American statements about not using Huawei? We don't have that situation in Africa."

But analysts say involving Huawei in Safaricom's 5G network could hamper talks, announced this month, on a free trade agreement between the U.S. and Kenya.

Joseph said Safaricom would follow guidance from its two main shareholders, South Africa's Vodacom and the UK's Vodafone (LON:VOD) - but added that the advice is not legally binding.

(SOUNDBITE) (English) SAFARICOM ACTING CHIEF EXECUTIVE OFFICER, MICHAEL JOSEPH, SAYING:

"We don't have any big brother here who is telling us what we can and cannot do."

Safaricom, the most profitable company in East Africa, is also planning to expand into Ethiopia where Prime Minister Abiy Ahmed has promised to open up the state-run telecoms sector.

Two operating licenses are expected to be offered and Safaricom is putting together a consortium, including Vodacom and Vodafone, for its bid.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

But Joseph said the price of entry is expected to be lower than the initially quoted figure of $1 billion.

(SOUNDBITE) (English) SAFARICOM ACTING CHIEF EXECUTIVE OFFICER, MICHAEL JOSEPH, SAYING

"I do not know what it could be but it wont be, I do not think it is going to be a billion dollars now."

Joseph took over the helm at Safaricom in July after the death of longtime CEO Bob Collymore. He will hand over to full-time appointment Peter Ndegwa on April 1.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.