ADDIS ABABA, Feb 11 (NNN-ENA) – The Ethiopian government has invited interested parties in the partial privatisation of the state-owned telecommunication firm, Ethio-Telecom.
“The government of Ethiopia is proposing a partial privatisation of Ethio-Telecom … by selling up to 45 percent of the equity share capital of the company,” the Ethiopian Ministry of Finance disclosed in a statement.
The ministry said, Ethio-Telecom’s robust infrastructure, coupled with its strong financial performance, will offer a significant competitive advantage to any investor. It also said, the existing low telecom density in the country, highlights the huge untapped potential in the country’s telecommunication sector.
As part of the plan, the Ethiopian government invited interested parties to invest in Ethio-Telecom, adding value to the state-owned telecommunication firm by bringing in best practices, in terms of operations, infrastructure management and next-generation technological capabilities.
The plan is said to be part of the framework laid out by the Ethiopian government for the privatisation of public enterprises.
The move is said to broaden the role of the private sector in the country’s economy, improve the efficiency of public enterprises, enhance their competitiveness, increase their access to capital, and enhance the quality and accessibility of their services.
Noting Ethiopia as one of the fastest growing economies in Africa, coupled with its burgeoning young population, as well as, the country’s high gross domestic product growth rate, the ministry said, increased private sector investment offers valuable growth opportunities.
Ethiopia’s telecom industry is considered a huge untapped market, as the country has the second largest population in Africa, only after Nigeria.
Ethiopia awarded its first private telecom license in May, 2021, to a Safaricom-led consortium for a license fee of 850 million U.S. dollars.– NNN-ENA
