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Safaricom in Ethiopia
Monk
#1 Posted : Monday, July 29, 2024 3:43:46 PM
Rank: Member


Joined: 7/1/2009
Posts: 255
Looks like Safaricom will hurt from this news.

https://shega.co/post/et...y-of-floating-currency/

kawi254
#2 Posted : Tuesday, July 30, 2024 1:07:05 PM
Rank: Member


Joined: 2/20/2015
Posts: 467
Location: Nairobi
Monk wrote:
Looks like Safaricom will hurt from this news.

https://shega.co/post/et...y-of-floating-currency/



On the contrary, they benefit because a lot of investment is waiting for the true value of birr to be realized. It is no use making money in birr and you can't get dollars out of the country.
Monk
#3 Posted : Wednesday, July 31, 2024 3:46:27 PM
Rank: Member


Joined: 7/1/2009
Posts: 255
kawi254 wrote:
Monk wrote:
Looks like Safaricom will hurt from this news.

https://shega.co/post/et...y-of-floating-currency/



On the contrary, they benefit because a lot of investment is waiting for the true value of birr to be realized. It is no use making money in birr and you can't get dollars out of the country.


In the long term, yes they'll benefit. In the short term though, it will be a repeat of what happened to KCB & COOP in SS.
DtheK
#4 Posted : Friday, August 02, 2024 5:35:54 PM
Rank: Member


Joined: 2/15/2010
Posts: 126
Location: Kenya
In the long term it will be a positive.
In the short term being that saf Ethiopia is highly indebted in Birr won't they have a hyper inflationary gain thing?
Don't forget IFC is invested in saf Ethiopia and is looking to lend them a couple of tens of Billions KES (in USD of course), they'd favor and influence for a system that makes it easy for saf Ethiopia to pay them back and receive dividends in future.
For saf it pays to have friends/share holders in high places.
Ericsson
#5 Posted : Tuesday, August 06, 2024 7:56:00 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,663
Location: NAIROBI
DtheK wrote:
In the long term it will be a positive.
In the short term being that saf Ethiopia is highly indebted in Birr won't they have a hyper inflationary gain thing?
Don't forget IFC is invested in saf Ethiopia and is looking to lend them a couple of tens of Billions KES (in USD of course), they'd favor and influence for a system that makes it easy for saf Ethiopia to pay them back and receive dividends in future.
For saf it pays to have friends/share holders in high places.



Will Safaricom Ethiopia be able to pay all that debt?
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#6 Posted : Tuesday, August 06, 2024 7:58:26 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,663
Location: NAIROBI
Monk wrote:
kawi254 wrote:
Monk wrote:
Looks like Safaricom will hurt from this news.

https://shega.co/post/et...y-of-floating-currency/



On the contrary, they benefit because a lot of investment is waiting for the true value of birr to be realized. It is no use making money in birr and you can't get dollars out of the country.


In the long term, yes they'll benefit. In the short term though, it will be a repeat of what happened to KCB & COOP in SS.


Not really.
KCB and Co-op venture in SS wasn't debt funded.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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