Ethiopia: the process of privatizing Ethio Telecom and opening up telecoms begins

Mobile phones are the order of the day at a graduation ceremony in Baher Dar, northern Ethiopia.

EDUARDO SOTERAS / AFP

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2 min

The Ethiopian government has announced that it will launch calls for tenders next October for the partial privatization of the sole mobile telephone operator, Ethio Telecom, as well as the granting of two mobile telephone licenses.

Ethiopia is the last major African telephony market still closed to competition.

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By February 2021, the government hopes to have sold 40% of Ethio Telecom's capital and sold two mobile telephone licenses.

It is a real revolution for a country until now closed to foreign operators.

Ethio Telecom indeed holds the monopoly of mobile telephony.

And it is not a clear success.

The company ranks among the worst performers in the connected world.

In Ethiopia, internet access is slow and expensive, communications remain expensive.

An opening to boost the sector

Ethio Telecom is in debt of more than three billion dollars with China, whose companies control the infrastructures.

The government hopes that the partial privatization of Ethio Telecom coupled with opening up to competition will boost the sector.

The cake is mouthwatering.

It represents 90 million consumers and 45 million customers for Ethio Telecom.

In Africa, Ethiopia is the last big opportunity for international operators.

All the giants are in line: Vodafone, MTN,

Orange

, Telkom.

A dozen groups in total who have until October to submit their offer.

►Also listen: Ethiopia: privatization of Ethio Telecom, a step towards economic liberalization

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  • Ethiopia

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