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Ethiopia to release an Expression of Interest to sale 40 percent of telecom sector

The Government of Ethiopia announced readiness to release an Expression of Interest (EOI) for the sale of a 40 percent…

The Government of Ethiopia announced readiness to release an Expression of Interest (EOI) for the sale of a 40 percent stake its giant telecom business.The announcement came while the country’s Ministry of Finance and the Public Enterprises Holding and Administration Agency disclosed the completion of partial privatization of the Ethio-Telecom, marking the end of more than a century-old state monopoly telecom business in the horn African nation.

“This is in line with the appointment of Deloitte as a lead transaction advisor, who is now on the final stage of completing the preparatory work which includes business plan, financial, legal and tax due diligence and business valuation following global best practice,” the ministry said in a statement.

The issuance of the EOI on 15 June 2021 will allow international investors to express interest in acquiring a stake in Ethio Telecom, one of the largest telecom operators in Africa.

Investors will be given 30 days to respond with an expression of interest. After the issuance of the EOI, the process will follow with a Request for Proposal (RFP); and the timeline for the release of the RFP will be communicated in due course, with the aim of completing the transaction in an efficient and streamlined manner, the statement said. 

Ethio-Telecom privatization process was started in 2018 after the World Bank had insisted greater competition in the country’s telecommunication sector.

 

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