By retaining 60 percent, the Government of Ethiopia is set to sell 40% of Ethio Telecom ending the state’s monopoly of the sector for about a century.
The Ministry of Finance stated that the country is also going to recruit a transaction advisor to look into the process of the partial privatization of Ethio telecom, according to a local media, Addis Fortune. The decision to sell partially Ethio Telecom was made about a year ago after the reformist Prime Minister Abiy Ahmed came to power. Ethio Telecom is one of the most profitable companies owned by the government like the Ethiopian Airlines. Last Year Ethio telecom has announced profit of $830 million.
This morning the newly established telecom sector regulatory body, Ethiopian Telecommunication Authority, has announced that it has opened doors for foreign telecom operators to express their interest to enter the telecom market of Ethiopia. The Authority opens the door for foreign telecom operators to select two new telecom operators that will compete with Ethio Telecom. When two private telecom operators will be selected, Ethiopia will have three telecom operators for the first time.
Addis Fortune also stated that KPMG East Africa is recruited to conduct an asset valuation. “A second draft report on the work has already been submitted a month ago,” it said.