Ethiopia has set a new deadline of February 2021 to complete the partial privatisation of its telecommunications industry, Bloomberg reported. After presenting an update on the process to government officials in Addis Ababa, state minister of finance Eyob Tekalign said that the reform is fully on track.
Ethiopia plans to auction two new mobile network licences and sell a minority stake in state-owned monopoly Ethio Telecom. The plan was set for earlier this year but was delayed by the Covid-19 pandemic, regulatory complexities and a thwarted attempt to hold national elections. It was intended to bring in much-needed foreign exchange and boost the economy, while improving connectivity across the Horn of Africa nation.
Orange is a strong candidate to win one of the two new licences, according to people familiar with the matter, who asked not to be identified as the process is ongoing. A spokesman for Orange reiterated the carrier's interest in entering the country and said the firm is working on the right proposal.
MTN and a consortium led by the UK's Vodafone Group are also in the running, two of the people said. Both were on a list of companies that submitted expressions of interest released by the government in June. A spokeswoman for MTN said the Ethiopian authorities have said that twelve directives will be issued that will enable it to put together a business case and an investment case. Vodafone declined to comment.
