Ethiopia has a set amount that it expects to receive from the part-privatisation of the country's telecommunications industry, and could scrap the process if bidders do not meet the target, Bloomberg reported. Three independent teams have calculated the value of two new licences for competitors to state monopoly Ethio Telecom, Eyob Tekalign, the state minister responsible for the privatisation, told a media briefing.
That has given the government an amount that it is looking to raise from the sale, he said, without giving figures. "If we get the value we expect from the bidding process, we will go ahead," Tekalign said. "If not, we will have another look."
Bloomberg said his comments mark the first time an Ethiopian politician has publicly cast doubt over the much-anticipated liberalisation of the telecom industry. This would jeopardise a broader privatisation plan announced by Prime Minister Abiy Ahmed in mid-2018. The plan aims to shore up foreign currency reserves, pay down state debt, improve telecom service and create jobs.
International telecom operators have long coveted a foothold in Ethiopia, said Bloomberg, with its population of more than 100 million. Interested parties include Vodafone Group and its African partners Vodacom Group and Safaricom, as well as MTN Group and Orange.
Alongside the two new licences, a minority stake in Ethio Telecom is up for sale. Potential bidders have expressed concern about the exclusion of private tower operators in the process, and the potential for mobile money licences, the news agency added.
