Ethiopia has opened itself to propositions for a minority stake in Ethio Telecom as the government continues its strategy to broaden the telecoms private sector.
The Ministry of Finance detailed in a statement it is open to offers for a 45% stake in Ethio Telecom, 5% more than what the government was preparing in November.
The government released a request for proposal (RFP) for the partial privatisation to call on interested parties to enquire, and “add value” to Ethio telecom by “bringing in best practices in terms of operations, infrastructure management and next-generation technological capabilities.”
Interested parties have to pay a non-refundable US$20,000 when submitting their RFP and must do so by the deadline of February 23.
The Ministry of Finance wrote in its statement: “Over the last decade, Ethiopia has become one of the fastest growing economies in Africa. Its young population, high gross domestic product growth rate, and increased private sector investment offer valuable growth opportunities.
"Further, low teledensity in Ethiopia highlights the huge untapped potential in Ethiopia’s telecommunication sector. The Company’s (Ethio Telecom) robust infrastructure coupled with its strong financial performance will offer a significant competitive advantage to any investor.”
Selling a stake in Ethio Telecom had been in the works since 2018 and follows the licensing of a second operator licence which was taken by Safaricom.