The Ethiopian government plans to break Ethio Telecom into two separate entities and sell a 30% to 40% stake in both of them. The country is hoping to break the state-run telecoms provider’s monopoly and encourage competition in its telecoms sector.
“There will be two telecom corporations and shares will be sold in both … Somalia, with a population of twelve million, has four telecommunications firms. Ethiopia – with 100 million people – has one. There needs to be competition in the country,” said Prime Minister Abiy Ahmed, according to Reuters. “The stakes in Ethio Telecom will be allocated to firms that are ranked top ten in the industry globally.”
Earlier in June the country said that it was opening both its telecoms industry and its airline industry up to foreign investment, both South Africa’s MYN, and Vodacom have expressed interest.