14 April 2021

Ethiopia has a set amount it expects to receive from the part-privatisation of the country’s telecom sector and could scrap the process if bidders fail to meet the target.

According to reports, three independent teams have calculated the value of two new licenses that would compete with state monopoly Ethio Telecom, Eyob Tekalign, the state minister responsible for the privatisation process, told reporters. He said that has given the government an amount it is looking to raise from the sale, without giving figures.

“If we get the value we expect from the bidding process, we will go ahead,” Tekalign said. “If not, we will have another look.”

It is also the first time an Ethiopian politician has publicly cast doubt over the much-anticipated liberalisation of the telecom industry, a move that would jeopardize a broader privatisation plan announced by the country’s prime minister Abiy Ahmed in mid-2018.

The strategy had a range of goals: to shore up reserves of much-needed foreign exchange, pay down state debt, improve telecom service and create jobs.