Ethiopian PM outlines plans to split Ethio Telecom in two, sell shares in both companies

22 June 2018

Mergers, Acquisitions and Financial Results

Ethiopia’s government is planning to break state-run monopoly provider Ethio Telecom in two and then sell a 30%-40% stake in both of the companies created by this move, with a view to spurring competition in the local telecoms sector.

According to Reuters, the plan was outlined by Prime Minister Abiy Ahmed yesterday (18 June) during a question and answer session in parliament, where he noted: ‘There will be two telecom corporations and shares will be sold in both … Somalia, with a population of twelve million, has four telecommunications firms. Ethiopia – with 100 million people – has one. There needs to be competition in the country.’

Further, the PM also specified that he wants the holdings offered in the two telcos to be sold to high-profile companies, adding: ‘The stakes in Ethio Telecom will be allocated to firms that are ranked top ten in the industry globally.’

Source: Telegeography