The government Ethiopia Friday announced the postponement of bidding process to partially privatize the state-run telecom service provider, Ethio Telecom.
The Government proposed a partial privatization of the state run Ethio Telecom by selling 40% of the equity share capital of the firm.
Authorities issued a Request for Proposal (RFP) for the service license on September 28 2021, which generated interests from some top global firms including France’s Orange.
The country’s Ministry of Finance and Public Enterprises Holding and Administration Agency in a joint statement on said “given the recent developments and fast-moving macroeconomic changes both globally and from a country perspective,” the government “has chosen to postpone the privatization process.”
“The Government of Ethiopia believes that taking time to accommodate the improved macroeconomic situation as well as continually improving financial performance of Ethio Telecom will result in better value for all the parties involved and in particular the citizenry of Ethiopia,” the statement added.
They said the government “remains committed to finalizing the privatization process and looks forward to re-engaging in due course with existing and additional parties that have expressed interest in the Request For Proposal.”
The push to partially sell-off the Ethio Telecom is a part of the government’s plan to open up Ethiopia’s economy and improve the efficiency of public enterprises and enhance their competitiveness.
MG/abj/APA