Ethiopia releases RFP for the Partial Privatization of Ethio-telecom

Addis Ababa, February 10, 2023 (FBC) – The Ministry of Finance-Ethiopia (MoF) has released a Request for Proposal (RFP) for the Partial Privatization of Ethio-telecom to invite proposals from interested parties.

According to Ministry of Finance, the Government of Ethiopia has laid out the framework for the privatization of public enterprises under the Public Enterprises Privatization Proclamation No.1206/2020 in order 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 enhance the quality and accessibility of their services.

In its public release the Ministry disclosed that the Government of Ethiopia is proposing a partial privatization of Ethio Telecom, by virtue of the Ethio-Telecom Establishment Council of Ministers Regulation engaged in providing telecommunication services in Ethiopia, by selling up to 45% of the equity share capital of the Company (the “Partial Privatization”).

The Ministry sated that low Tele density in Ethiopia highlights the huge untapped potential in Ethiopia’s telecommunication sector.

It added the Company’s robust infrastructure coupled with its strong financial performance will offer significant competitive advantage to any investor.

Accordingly, the Government of Ethiopia has released the RFP for the Partial Privatization to invite proposals from interested parties who can add value to the Company by bringing in best practices in terms of operations, infrastructure management and next generation technological capabilities.

MoF revealed that the RFP is open to all interested parties and not limited to those companies who indicated their interest by submitting an expression of interest.

By: Yonathan Yoseph