Ethiopia has announced plans to award telecommunication licenses to two foreign companies that will set them in direct competition with Ethio-Telecom which is government-owned.
This move is aimed at increasing private sector participation and flow of private capital into the country’s economy which is home to over 100 million residents.
In the same breath Ethiopia’s government is also planning to privatize a number of state-owned entities in addition to Ethio-Telecom, one of them being the country’s sugar processing factories.
The country is placing its bets on such economic reforms will drive growth and contribute to the African economy at large.
A statement from Ethiopia’s Ministry of Finance read, “Privatization of the telecommunications sector will facilitate Ethiopia’s push towards a digital economy by closing gaps in digital infrastructure. It will also enable the introduction and expansion of new technologies.”
Ethiopia’s target is to get to a highly industrialized state, a growth driven by technology. International operators would bring with them infrastructure for high-speed internet connectivity and improve upon existing mobile infrastructure in the country.
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The Ethiopian Communication Authority has been established by the government as an independent regulatory body which is intended to monitor, regulate, and license new and existing telecommunications companies in the country.
At the moment several international telecom companies have expressed interest in operating in the country according to Ethiopian officials.
