Ethiopia has launched a tendering course of for the proposed sell-off of a 40 p.c stake in State-owned provider Ethio Telecom to personal buyers, a part of the federal government’s broader plan to open up the Horn of Africa nation’s economic system.
buyers can now submit expressions of curiosity (EOI), the primary of a collection of phases that may result in choosing of a profitable bidder, Zinabu Yirga, Deputy Director of Public Enterprises Holding and Administration Company instructed a press convention within the capital Addis Ababa on Monday.
“The federal government need(s) State-owned enterprises to be aggressive and productive,” Zinabu mentioned, explaining the authorities’ motivation for promoting part of Ethio Telecom to personal operators.
As a part of the broader opening up of the sector, Ethiopia can also be shifting to license non-public operators to compete with Ethio Telecom.
Final month authorities handed out the primary non-public operator licence to a consortium led by Safaricom #ticker:SCOM, UK’s Vodafone, and Japan’s Sumitomo.
The telecoms enterprise in Ethiopia, a rustic with a inhabitants of greater than 100 million individuals and one of many area’s greatest economies, is taken into account profitable and is predicted to attract important investor curiosity.
Brook Taye, senior advisor on the finance ministry mentioned the 40 p.c could be offered as a single stake to a single investor.