Ethiopia Increases Ethio Telecom Stake Sale to 45%, Plans to Revitalize Telecommunications Industry

Ethiopia has increased its planned stake sale in Ethio Telecom to 45% from 40% previously, as part of its efforts to revitalize the telecommunications industry and attract investment.

The Ethiopian government has decided to increase the size of its planned stake sale in Ethio Telecom from 40% to 45%. The privatization process, which was previously postponed, was revived by the government last November to sell a 40% stake. At the same time, the government also resumed plans to issue a full telecommunications license for a third operator in the country. However, the finance ministry has now revised the plan and will now sell up to 45% of Ethio Telecom.

The telecommunications industry is a valuable opportunity for Prime Minister Abiy Ahmed’s efforts to liberalize the economy. Despite this, the recent nearly two-year war in the northern Tigray region has hindered attempts to attract investment in the sector. In May 2021, a consortium led by Kenya’s top operator, Safaricom, was awarded the first international telecommunications license with a winning bid of $850 million. Rival company, Safaricom Ethiopia, began commercial operations in October.

More News