Telecom

Ethiopian govt postpones partial privatization of incumbent Ethio Telecom

Ethiopian govt postpones partial privatization of incumbent Ethio Telecom
Tuesday, 22 March 2022 05:01

The Ethiopian government announced last year it has started the process to open part of the capital of the incumbent Ethio Telecom to private investors. However, the government now says it has to reschedule the process. The new decision was made public last March 18 via a tweet by the Ministry of Finance.

"Given the recent developments and fast-moving macroeconomic changes, both globally and from a country perspective, the government of Ethiopia has chosen to postpone the privatization process," the tweet reads, stressing that “the Government believes that taking time to accommodate the improved macroeconomic situation as well as continually improving the financial performance of Ethio Telecom will result in better value for all the parties involved.”

In June 2021, the Ethiopian government had launched a bidding process for the sale of 40% of the incumbent's capital to an international company. This privatization is part of a national economic reform program that began in December 2019. The process was supposed to be in its final phase, but the security crisis that sparked in the northern part of the country since November 2020 has thwarted the authorities' plans.

For the Ethiopian government, the postponement of Ethio Telecom's privatization will allow it to take time to adjust to the prevailing macroeconomic situation and to continuously improve the operator's financial performance.

According to Frehiwot Tamiru (pictured), the state-owned company's CEO, Ethio Telecom has missed its financial targets for the H1 2021 by 13.6%. The telecom company recorded a revenue of 28 billion birr ($565 million), still growing by 6.7% compared to the same period in 2020.

Isaac K. Kassouwi

On the same topic
By investing in shared, open-access fibre networks, Vodacom and Maziv can help drive more affordable retail broadband pricing and reduce barriers for...
• Ghana plans to shift 16,000 public services online through the Ghana.gov platform by end-2025• The updated portal will be fully linked to the national...
• Paratus launches satellite connectivity for schools in 7 African countries• The solution includes Starlink hardware, local support, and 2 TB of monthly...
• New school to train engineers in AI and digital transformation fields• Initiative aligned with “Digital Morocco 2030” strategy targeting 100,000 trained...
Most Read
01

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
02

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
03

• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo...

Algeria Awards Commercial 5G Licenses
04

• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...

Nigeria Secures $100 mln ECOWAS Bank Loan for Lagos-Calabar Coastal Highway
05

• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector cou...

IFC Plans Investment Fund to Help Grow African Film Industry
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.