TechInAfrica – Another new project has been declared by the Ethiopian government. The government started to offer a 40% stake in the state-owned telecommunications companies, Ethio Telecom.
The deal is still in its beginning phases with the determination of an effective bidder expected to be a distinctly significantly long process.
According to the report, around 5% of the stakes will be sold to local investors through an initial public offering. Meanwhile, a 55% stake in the operator still runs by the Ethiopian council.
The committee stated that the aim of stake’s offering in the telecommunication company in a large number is to change the monopoly of Ethiopia as a country in its telecom sector. Also, the new plan will help two foreign operators to receive licenses, take part, and operate in Ethiopia in the vast, nearly-untapped market.
The Deputy Director of Public Enterprises, Holding and Administration Agency, Zinabu Yirga, in Tech Cabal from a press conference in the capital Addis Ababa on Monday, stated that the motivation of those who hold authorities to sell a large minority of Ethio Telecom stake to private operators is to push the state-owned enterprises to be competitive and productive.
Yirga added that as part of widening the telecommunication sector in Ethiopia, the council plans to certify private telecommunication companies to compete with Ethio Telecom.
Investors Line Up for Ethiopian Telecoms Market
40% of Ethio Telecom’s stake is offered as a single stake to the sole investor, according to Brook Taye, a senior advisor in the Ethiopian Finance Ministry. At this point, it is indistinct how much the stake will be worth. Nevertheless, the news ought to draw in massive investors from the African continent and globally.
Ethiopia’s progression plan, first reported in 2019 and led by Prime Minister Abiy Ahmed, has seen a few large defers in transit to acknowledgment.