With the progress of Ethiopia’s telecom privatization process, Pan-African telecom operators MTN, Orange and Vodacom are looking to penetrate Ethiopia. Ethio Telecom has taken a big step for its privatization by pre-selecting six consultancies in partnership with the World Bank. Its businesses will be split into two. This will offer huge growth potential to new investors.
The telecom was selected as the first amongst the four major state corporations (telecommunications, aviation and banking sectors) to be privatized. This move is in line with top decisions to privatize state-owned companies and liberalize the economy. This is one of the reforms pioneered by Prime Minister Abiy Ahmed.
The communications director in the country’s Ministry of Finance, Haji Ebsa said last week that the government will give priority to the partial privatization of Ethio Telecom. While majority stakes will be held by the state, shares in the corporations will be sold to investors.
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“Technical and steering committees have been established under the Finance Ministry, as well as a macro committee under the Office of the Prime Minister.” Haji added.
Ethiopian Airlines, Ethiopian Shipping & Logistics Services Enterprise and Ethiopian Electric Power, are state-owned corporations lined up for liberalization. The government is opening these sectors up for private investments.