situation report

Jun 18, 2019 | 18:54 GMT

1 min read

Ethiopia: Government Plans to Split State-Owned Telecom Provider Into 2 Companies

What Happened: Ethiopia will break Ethio Telecom into two businesses as it prepares to open the state-owned enterprise to foreign investment and partial privatization, Reuters reported June 17, citing a report by state broadcaster Fana, later confirmed by Finance Minister Eyob Tekalign Tolina.

Why It Matters: Ethio Telecom is one of Africa's largest telecommunications providers by subscribers. Opening up Ethiopia's telecommunications sector will provide a huge opportunity for potential investments and telecom partners like MTN, Orange and others.

Background: Since coming into office in April 2018, Ethiopian Prime Minister Abiy Ahmed and his allies have sought to liberalize key sectors of the Ethiopian economy. Last week, Ethiopia's parliament passed a law that will allow a new regulatory agency to issue licenses to private investors.

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