Ethiopia to sell stake in Ethio Telecom to encourage competition

By professo

The Ethiopian government has announced plans to 30-40% stake in Ethio Telecom, the state-owned telecommunications company.

The government has made the decision in a bid to remove the telco from its monopolised position by splitting it in two, Reuters reported.

The news was announced on 18 June by the nation’s Prime Minister, Abiy Ahmed, who noted the goal of creating competition in the industry.

“There will be two telecom corporations and shares will be sold in both,” stated Ethiopia’s Prime Minister, claims Reuters.

SEE ALSO:

“Somalia, with a population of 12 million, has four telecommunications firms. Ethiopia, with 100 million people, has one. There needs to be competition in the country.”

It is anticipated that Ethiopia, a country with an untapped telecoms market, could receive a large rise in investments from firms who want to work with the government.

The shares will be sold to the top 10 globally ranked firms in the industry, the Prime minister confirmed, with Vodacom and MTN having expressed interest.

“There will be one year or two years of intensive study taking place (before the shares of Ethio Telecom are sold).”

Share

Featured Articles

Top 10 largest revenue generating family businesses in MENAT

From the UAE to Turkey, these family firms are the largest by revenue in MENAT and cover everything from energy to entertainment

Top 10 metaverse projects in the UAE, including world firsts

As Accenture predicts the metaverse will fuel a US$1 trilion commerce opportunity by 2025, we round up 10 pioneering metaverse projects in the UAE

PwC’s survey shows Middle East CEOs remain upbeat on growth

CEOs in the Middle East are far more optimistic about regional growth than those in North America and Europe, according to PwC’s annual survey

Opinion: “Why we must tackle the digital skills crisis"

Leadership & Strategy

5 Mins With: Kathryn Kaminsky Vice Chair Trust Solutions PwC

Leadership & Strategy

Survey: The Future of Cloud Security in the Middle East

Technology