Gov't to Award Foreign Companies that Buy 40 Percent Stakes of Ethio Telecom by February 2021

Addis Ababa September 23/2020 (ENA)Ministry of Finance revealed today that it will issue invitation for bid to international telecom companies to award two bidders that take over 40 percent stakes of Ethio Telecom in October 2020.

The ministry held a consultative meeting today with private, financial and IT sectors to get their feedback on the privatization process, particularly in the telecom sector during the past two years.

Senior Advisor at Ministry of Finance, Brook Taye told ENA that the bid will be announced and all interested bidders can get information within the coming 20-25 days.

According to Brook, the government has been working in telecom reform to prepare a new proclamation during the last 24 months.

The bid document for the two new licenses will allow the winners to build, own and operate  telecommunications network, he added.

Finance Minister Ahmed Shide on his part said at the consultative meeting that Ethiopia has been conducting a sizable and impactful reform in the telecom sector which enables the country to accelerate its digital economy.

This transformation could be considered as a giant economic departure in the Ethiopian economy that realizes the prosperity of the country, he noted.

According to him, the telecom privatization process is fruitful and undertaken carefully by inviting Ethiopians and other experts from aboard in a highly transparent and accountable  manner.

As telecom has become a heavy industry in the modern times, Ethiopia has prioritized this sector to ensure competitiveness, equity and generate maximum value from this sector, Ahmed elaborated.  

Some 40 percent of Ethio Telecom stakes are to be transferred to two winning companies and 5 percent will be sold to Ethiopian nationals, it was learned.

The competition and the partial Ethio-Telecom sales are expected to be completed by early February, 2021.