Ethiopia is set to sell a 40% stake in the state-owned carrier, Ethio Telecom to private investors, as it launched a tendering process for the proposed sell-off.
The development is part of the government’s broader plan to open up the Horn of Africa country’s economy, Reuters reports.
What this means
Interested investors can now submit so-called expressions of interest (EOI), the first of a series of stages that will lead to the picking of a successful bidder.
Brook Taye, senior advisor at the finance ministry said the 40% would be sold as a single stake to a single investor.
What the government is saying
Zinabu Yirga, Deputy Director of Public Enterprises, Holding and Administration Agency told a press conference in the capital Addis Ababa, said:
“The government want(s) state-owned enterprises to be competitive and productive, the authorities’ motivation for selling a part of Ethio Telecom to private operators.
As part of the broader opening up of the sector, Ethiopia is also moving to license private operators to compete with Ethio Telecom.”
What you should know
- After concentrating its efforts on education, health and agriculture, the Ethiopian government decided to focus on the improvement of telecommunication services, considering them as a key lever in the development of Ethiopia. Ethio Telecom was birth on Monday 29th of November, 2010.
- With a population of over 100 million, Ethiopia’s telecoms business is considered lucrative and is expected to draw significant investor interest.
