This archive report was first published on 11 October 2019.
Published on October 11, 2019, the Ethiopian government announced plans to privatize Ethio Telecom, the country's state-owned telecom operator, and has launched a search for an adviser to help with the sale of a stake in the company.
Kenya's Safaricom, the country's largest telecom operator, is reportedly considering acquiring a stake in Ethio Telecom, with the company's interim CEO, Michael Joseph, stating that Safaricom is looking at all options, including buying a stake in the company or seeking a license to start operations in Ethiopia.
The Ethiopian government has set a target of selling a minority stake of up to 49% in Ethio Telecom, with the adviser helping to determine the minimum value and select the right partner.
According to Safaricom's interim CEO, Michael Joseph, the company is attracted to the Ethiopian market due to its huge population and growth potential, with the country's 100 million people offering a penetration of 44%.
Kenya's Safaricom has expressed interest in gaining access to Ethiopia's fast-growing mobile market, with the company's cash-rich status making it an attractive partner for the Ethiopian government.
