ADDIS ABABA – The government of Ethiopia has called for expressions of interest for a 40 per cent stake in the state-controlled telecommunications company, Ethio Telecom.
Interested investors have a month to submit their expressions of interest (EOI), beginning June 15, for the minority stake of Ethio Telecom. according to the Ministry of Finance.
“After the issuance of the EOI, the process will follow with a request for proposal (RFP); and the timeline for the release of the RFP will be communicated in due course, with the aim of completing the transaction in an efficient and streamlined manner,” the Ministry said.
The latest announcement came days after the government signed a telecommunications license to a Safaricom Plc-led consortium as the government continues to push forward with its broader plan to open up the Horn of Africa country’s economy.
The government announced the partial sale of the state-run telecom firm in 2018 to attract more foreign capital and maintain one of the fastest economic growth rates in Africa, and create more jobs.
It will also help the company “to be competitive and productive,” said Zinabu Yirga, Deputy Director of Public Enterprises Holding and Administration Agency, during a press briefing on Monday.
Officials said the 40 per cent stake would be sold as a single stake to a single investor, according to the ministry.
The government will retain 55% of the company, while 5% will be provided to local investors probably through an initial public offering.
Ethiopia, one of the largest remaining telecommunications markets, has for long been coveted by investors, including Vodafone Group plc, Orange SA and MTN Group Ltd.