More Africa NewsEthiopia: Orange withdraws from the process of acquiring a stake of up to 45% in Ethio Telecom

November 29, 2023by myles0

Orange had expressed, as early as July 2021, its interest in acquiring 40% in Ethio Telecom, but the process was postponed until March 2022 before finally being relaunched in November. Last March, the French company reiterated its interest in the Ethiopian telecoms market.

French telecommunications company Orange has decided to withdraw from the race to acquire a stake of up to 45% in Ethiopian incumbent operator Ethio Telecom. This is what the Reuters news agency reported in a publication on Monday, November 27, referring to a press release sent to it by the operator.

“  After analysis, the group believes that the conditions do not allow the rapid deployment of our strategy and the realization of a project that creates value for the company  ,” Orange said.

It was in July 2021 that Orange formally expressed its interest in a stake in Ethio Telecom when the government had put 40% of the public company up for sale. Launched in June 2021, the procedure was postponed to March 2022 due to the national and global socio-economic context, but was finally relaunched in November 2022, at the same time as the process of awarding the second telecoms license (License B) of the country which had been suspended in December 2021.

Furthermore, Orange’s decision to renounce a possible entry into the Ethiopian telecoms market comes a few days after the Ethiopian government suspended for a second time the process of awarding License B due to insufficient interest from the walk. Bloomberg justifies this suspension by the ongoing conflicts in certain regions of the Horn of Africa.

Last March, Orange had already renounced a short-term entry into the Nigerian telecoms market, deploring in particular the absence of favorable conditions for the operation . Society views being number one or number two as a condition for success. This is not guaranteed in Nigeria due to the saturation and competition that prevails in the national telecoms market disputed between MTN, Globacom, Airtel and 9mobile. In addition to its operators, there are mobile virtual network operators (MVNOs) and Internet service providers (ISPs), among others.

Source: Agence Ecofin

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