The government of Ethiopia has published a Request for Proposal (RFP) documents inviting interested investors to bid for 45 per cent minority stake in the national carrier Ethio Telecoms.
The government had previously stated it would offer up to 40 per cent of the operator and retain the rest but the offer has been upped by 5 percentage points, hoping to raise some $675 million from the private investor.
In a statement on its website, the Ethiopian Ministry of Finance outlined details of the offer as part of its opening of a request for proposal (RFP) process, giving interested parties until 23 February, 2023 to ask for the document at the cost of $20,000.
The plan to sell shares in Ethio Telecom has been in the works since 2018 as part of wider efforts to open-up the then state-run monopoly. Since then, it has issued its first private licence to Safaricom at $850 million, and is considering a move to find a third player for the segment, after MTN opted out.
Announcing availability of the RFP, the ministry added the investor should be able to add value to the company by bringing “best practices in terms of operations, infrastructure management and next-generation technological capabilities”.
“Over the last decade, Ethiopia has become one of the fastest-growing economies in Africa. Its young population, high gross domestic product growth rate, and increased private sector investment offers valuable growth opportunities,” it added.
The ministry also noted that it believes there was untapped potential in the country’s telecoms sector and the move is to broaden the role of the private sector in the Ethiopian economy, improve the efficiency of public enterprises, enhance their competitiveness, increase their access to capital, and boost the quality and accessibility of their services.
“Further, low tele-density in Ethiopia highlights the huge untapped potential in Ethiopia’s telecommunication sector. The Company’s robust infrastructure and strong financial performance will offer a significant competitive advantage to any investor,” the statement said.
