Ethiopia Appoints A Privatisation Advisor For Ethio Telecom

11 October 2019

Mergers, Acquisitions and Financial Results

Ethiopia has reportedly appointed a transaction advisor to assist in the privatisation process for the state-run Ethio Telecom, and another advisor will be selected in the coming weeks to oversee the licensing process in the telecoms sector, according to a senior finance ministry official.

The Prime Minister of Ethiopia, Abiy Ahmed took office last year and announced a list of major political and economic reforms.

The State Minister of Finance Eyob Tekalign Tolina confirmed that Ethio Telecom had appointed the international consulting firm KPMG to facilitate a process aimed at selling off some stakes in the telecom.

Eyob said that the government had also issued out an expression of interest for a transaction advisor that would help guide it with issuing licences for new operators who would enter the telecoms sector.

The government had said in July that it would award two telecoms licences to multinational telecoms companies, in the first announcement of the government’s plans to open one of the world’s last closed telecom markets.

The government would also offer a minority stake in Ethio Telecom, and foreign firms would be invited to bid.

Eyob said that it is too early to tell what percentage of the state-run telco will be sold off.

Ethiopia’s telecoms industry is considered to be the big prize in the push to liberalise the country’s economy because it serves a population of around 100 million.

Officials have said that this is because the government believes that this particular sector will boost growth in many other parts of the economy.

Source: Reuters