Ethiopia plans to sell a 30-40 percent stake in its state-run telecoms monopoly and will split the company in two to spur competition, Reuters reported citing the country’s Prime Minister Abiy Ahmed. The PM told parliament there will be two telecom corporations and shares will be sold in both.
Ahmed noted that Somalia, with a population of 12 million, has four telecommunications firms, while Ethiopia, with 100 million people, has one and said there needs to be competition in the country. The stakes in Ethio Telecom will be allocated to firms ranked in the top ten of the industry globally, Ahmed said. South African telecoms groups MTN and Vodacom have both expressed interest to invest in Ethiopia and so may be potential investors. The PM said there will be 1-2 years years of intensive study before the shares of Ethio Telecom are sold.
The stake sales are part of a raft of measures announced by Abhmed, 41, a former army officer who became prime minister in April, saying a new start was necessary to end political instability in a country of 100 million people, where 40 percent are aged under fifteen.
