Ethiopian government reissues Expression of Interest for partial privatization of Ethio Telecom


Mereja Media

The Ethiopian Communications Authority (ECA) reissued an invitation for Expression of Interest for the partial privatization of the state-owned Ethio Telecom.

Briefing reporters on Wednesday, Finance Minister of Ethiopia Ahmed Shide said the government is now ready to engage with prospective bidders to partially privatize 40 percent of Ethio Telecom after careful consideration of the market conditions and a very stable outlook of the country.

The announcement came on the same day the government kicked off a stakeholder consultation process to resume the issuance of the third telecom operating lisence.

Deloitte Consulting Ltd will be the transaction advisor representing the government that seeks to sell 40 percent of its stake in Ethio Telecom to a single investor. The government will retain 55 percent of the company, while 5 percent will be offered to local investors.

This partial privatization of Ethio Telecom and initiation of the stakeholder consultation process for the third telecom operating license are part of the government’s Telecom sector transformation plan, said State Minister of Finance Eyob Tekalegn.

The move, he said, aims to create a world-class telecom industry and enhance the country’s digital economy.

Authorities already awarded an operating license to a consortium led by Kenya’s Safaricom, Vodafone, and Japan’s Sumitomo.

The group paid $850 million for the license and their company, Safaricom Telecommunication Ethiopia plc, is now competing with Ethio Telecom after launching its national operation in Sept 2022.

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