Govt Issues Request for Proposal for Partial Privatization of Ethio Telecom

ADDIS ABABA – The Government of Ethiopia has issued on Tuesday a request for partial privatization of the public telecom services provider, Ethio telecom.

The government plans to sell 40% of the equity share capital of the Company as part of its push to broaden the role of the private sector in the Ethiopian economy and enhance their competitiveness.

“To this end, the Government of Ethiopia has released a Request for Proposal (“RFP”) for the Partial Privatization to invite proposals from interested parties who can add value to the Company by bringing in best practices in terms of operations, infrastructure management and next generation technological capabilities,” says the ministry of finance.

The RFP is open to all interested parties and not limited to those companies who indicated their interest by submitting an Expression of Interest, according to the ministry.

An Interested party is required to pay a non-refundable fee of $20,000 and submit a confidentiality undertaking to the Government of Ethiopia in order to obtain the RFP.

Authorities believe Ethio telecom’s robust infrastructure and its strong financial performance will offer significant competitive advantage to any investor.

The likes of France’s telecom firm Orange has submitted an expression of interest to participate in the ongoing partial privatization of Ethio Telecom firm which collected a 56.5 billion birr ($1.29 billion) revenue last year.

Ethiopia last month launched a tendering process for the proposed sell-off of a 40% stake in Ethio Telecom to private investors, part of the government’s broader plan to open up the Horn of Africa country’s telecoms sector.

The telecoms business in Ethiopia, a country with a population of more than 100 million people, has attracted investors. In May, regulators awarded an operating licence to a consortium led by Kenya’s Safaricom, Vodafone, and Japan’s Sumitomo. The group paid $850 million for the licence, and plan to start operation next year.

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