(Bloomberg) -- Safaricom Plc, Kenya’s biggest company by market value, said first-half profit fell 18% because of the devaluation of Ethiopia’s currency. The weakening of the currency cost the company about 17.5 billion shillings, according to a results presentation. In the long term, this is good for Ethiopia,” Ndegwa said. But we must take into account the financial impact in the short term.”To mitigate that hit, Safaricom has renegotiated foreign-currency denominated contracts, taken on local suppliers and reviewed pricing. Cuts OutlookSafaricom slashed its forecast for the group’s operating profit by about 8% to a range capped at 100 billion shillings after widening its operating loss outlook for Ethiopia to as much as 61 billion shillings.

Source: Ethiopian News November 07, 2024 10:48 UTC