Ethiopia: Govt Plans To Privatise Telco Sector In Disarray As Interests Diverge
Plans by authorities in Ethiopia to privatise the country's telecommunications sector is said to have hit some significant road-block simply because the key players that are supposed to work together have entrenched, divergent interests.
An example, according to industry analysts, is the fact that while Ethiopia's finance ministry is enthusiastic on the privatisation plans as laid out by the government, the same could not be said of Ethio Telecom's officials who are only interested in retaining and maintaining the telco's monopoly.
At the start of September 2020, Eyob Tekalign, the Ethiopian finance minister announced that the country will now be pursuing "partial privatisation of Ethio Telecom and the allocation of two new telecom licenses", and that he does not envisage a fast-tracking of the process with a completion date now reset to February 2021.
The revised stake sharing model for Ethio Telecom is now along the following lines: fifty-five per cent majority shares - the Ethiopian government, 5 per cent to Ethiopian citizens and the remaining 40 per cent to be made available to international investors.