Addis Ababa March 18/2022/ENA/ Given the recent developments and fast-moving macroeconomic changes both globally and from a country perspective, the Government of Ethiopia has postponed the privatization process of Ethio Telecom, according to Ministry of Finance.Thank you for reading this post, don't forget to subscribe!
In a statement it issued today, the ministry recalled that as part of its Homegrown Economic Reform program the government had laid out framework for the privatization of public enterprises.
The purpose was 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, it added.
In line with this program, the government had proposed a partial privatization of Ethio Telecom, by selling 40 percent of the equity share capital of the company.
In September 2021, the Government of Ethiopia released a Request for Proposal for partial privatization to invite proposals from interested parties that can add value to the company by bringing in best practices in terms of operations, infrastructure management, and next generation technological capabilities.
It had, therefore, subsequent discussions with several bidders, according to a press release of the ministry.
However, the ministry said given the recent developments and fast-moving macroeconomic changes both globally and from a country perspective, the Government of Ethiopia has chosen to postpone the privatization process.
The government 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 also stated that the Government of Ethiopia 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.