Ethiopia is to sell a 30 to 40 percent of its stake in the state-run telecom company.
The selling of the government’s stake to big telecoms companies will mean a split in the company in two which is to encourage competition.
Prime Minister Abiy Ahmed said on Monday that “There will be two telecom corporations and shares will be sold in both.”
Abiy told parliament that “Somalia, with a population of 12 million, has four telecommunications firms. Ethiopia – with 100 million people – has one. There needs to be competition in the country.”
How would the stake be sold?
Abiy said stakes in Ethio Telecom will be allocated to firms ranked top 10 in the industry globally.
So far South African telecoms giants such as MTN and Vodacom are interested in investing in the East African nation.
“There will be one year or two years of intensive study taking place (before the shares of Ethio Telecom are sold),” Abiy said.
Local media reports that there are other potential investors standing by to also invest in the sector.
Source: Africafeeds.com
