Emirates Telecommunications Group (e&) and France’s Orange are reportedly exploring bids for a 45% stake in Ethiopia’s state-controlled telecoms operator, Ethio Telecom, according to sources familiar with the matter.
Both e& and Orange have engaged with advisors to evaluate potential offers for the stake in Ethio, although discussions are in the early stages and the Ethiopian government has yet to announce a timeline for the sale.
Ethiopia has intermittently considered selling a stake in Ethio Telecom in recent years, with initial attempts disrupted by a civil war between the government and the Tigray People’s Liberation Front. Following a peace agreement late last year, the government has revived the process.
In addition to the stake in Ethio Telecom, Ethiopia is also exploring the possibility of granting a license for a third mobile operator, challenging Ethio Telecom and Safaricom. e& has expressed interest in bidding for this license as well.
The Ethiopian authorities have not specified the conditions under which they would allow a partner to acquire a stake in Ethio Telecom, prompting close attention from potential investors like Orange.
Ethiopia, with a population of over 110 million people, represents a significant telecoms market with substantial growth potential. The African continent, characterized by its youthful population and relatively low wireless penetration, offers an attractive opportunity for service providers seeking expansion.
Spokespersons for Orange and e& declined to comment, while the Ethiopian Communications Authority and Ethiopian Investment Holdings have not responded to requests for comment at this time.
