More Africa NewsEthiopia: government postpones partial privatization of incumbent operator Ethio Telecom

March 22, 2022by myles0

In 2021, the government of Ethiopia launched a tender procedure for the privatization of the public telecom company. Several companies, including the French Orange, have expressed interest. They still have to wait to start the real battle.

The Ethiopian government has postponed the process of partial privatization of the public telecommunications company Ethio Telecom, due to the national and global economic environment. The announcement was made on Friday March 18 by the Ministry of Finance on its Twitter account.

“  In view of recent developments and rapid macroeconomic changes, both globally and from the perspective of the country, the Ethiopian government has chosen to postpone the privatization process  ,” it reads. The ministry added that the government is determined to carry out the privatization and that it will subsequently contact the entities that have expressed interest in its tender.

In June 2021, the Ethiopian government launched a tender procedure for the sale of 40% of the capital of the incumbent operator to an international company. This privatization is part of a national economic reform program launched in December 2019. The process should normally have already been in its final phase, but the security crisis that has prevailed in the north of the country since November 2020 has thwarted plans. authorities.

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

According to Frehiwot Tamiru, CEO of the state-owned company, Ethio Telecom missed its financial targets for the first half of 2021 by 13.6 percent. The revenue recorded by the telecom company stands at 28 billion birr ($565 million), still up 6.7% compared to the same

Source: Agence Ecofin

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