PM Abiy announces preparation to award second nationwide telecom license

Addis Ababa, June 9, 2021 (FBC) – Prime Minister Abiy Ahmed yesterday announced preparation to award the second new nationwide telecom license with the necessary policy adjustment.

The nation will follow the same transparent and inclusive tendering process as the previous one, the Premier said.

In his remark on the telecom licensing agreerement signing event yesterday, the Prime Minister noted that the country is at the final stage of starting the tendering process to partially privatize the telecom with a size of 14% of the company’s share to international investors, and 5% to Ethiopians.

Premier called on all players in the sector to coordinate and redouble Ethiopia’s efforts to connect everyone to the global digital economy.

Abiy acknowledged the role of entrepreneurs the private sector and the youth in enhancing the economic development of the country.

Ethiopia designed and implemented a new and forward-looking proclamation that would government the sector, established an independent regulatory authority-the Ethiopian Communications Authority, and engaged stakeholders and the public for feedback on every step on the way, Abiy said.

“We launched the tendering process, and of course, lastly, managed to secure large amount of foreign direct investment into Ethiopia. The introduction of competition as a result of the opening up of the sector is expected to positively impact every sector of the economy. In agriculture, the backbone of Ethiopia’s economy, for example, mobile based technology systems will provide agricultural related service to farmers” premier underlined.

He added saying: “Vital real-time information, such as livestock tracing, weather data and commodity pricing available via mobile phone will improve productivity for farmers. Also positively impacted will be digital banking, and payment systems that will give the government businesses as well as consumers of such services, efficient access, digital financial inclusion, and more control over financial transactions.”

In the education sector, online courses will be much more ready readily available and propagated electric electronically throughout the country.

In health care provision, there will be significant positive impact extended and improved through healthcare information distributed via smartphone and online medical consultations.

In the transportation sector, companies reliant on internet connectivity, such as public transport and delivery services, in general will be able to provide efficient and cost effective services. Business process outsourcing, cloud computing data center and hosting service will give business owners and users more flexibility and more affordable data storage. Will also see vast improvement in the internet penetration rate, which will promote the sustainable development of entrepreneurship and small and micro businesses.

Over all, a more vibrant telecommunications sector will contribute billions to Ethiopia’s economy through SME productivity gains, job creations and private sector partner participation can have an exponential impact on economy growth.

“From the government side, we will continue with the reform process in all sectors of the economy” the Prime Minster added.

In 2018, Prime Minister Abiy’s administration announced commitment to liberalize the telecommunication sector and opened it up to domestic and foreign investments. He called the decision “a major policy shift in Ethiopia”