The Ethiopian government has issued a Request for Proposal (RFP) for the partial privatization of Ethio Telecom, Ethiopia's state-owned and so far sole telecom services provider. The RFP is extended to all interested parties "who can add value to the company by bringing in best practices in terms of operations, infrastructure management and next-generation technological capabilities."
Ethiopia's Ministry of Finance, announcing the issuance of the RFP today, September 14, 2021, has recalled that the Ethiopian government had embarked on a Homegrown Economic Reform Program, and this announcement is part of the framework laid for the privatization of public enterprises under the Public Enterprises Privatization Proclamation No. 1206/2020. In accordance with this, the Ministry pointed out, it has brought up 40 percent of Ethio Telecom's equity share capital for sale.
Ethiopia has become one of the fastest-growing economies in Africa over the last decade, the Ministry recalled in its statement. In addition to this, the statement read, Ethiopia's young population, high gross domestic product growth rate, and increased private sector investment offer valuable growth opportunities. Moreover, Ethiopia's low tele-density highlights the huge untapped potential in the country's telecommunication sector, the Ministry of Finance related.
Ethio Telecom's robust infrastructure coupled with its strong financial performance will offer a significant competitive advantage to any investor, the Ministry of Finance pointed out. It is to this end, the Ministry said, that the Ethiopian government has released the RFP for Ethio Telecom's partial privatization.
All details and instructions in relation to the partial privatization which inter alia include the process of submission of proposal and qualification criteria are described in the RFP, it has been learned.
This RFP is open to all interested parties and not limited to those companies who indicated their interest by submitting an Expression of Interest, the Ministry of Finance announced.
The RFP can be obtained by paying a non-refundable $20,000, and upon submission of a confidentiality undertaking to the government.
Source: Ethiopia's Ministry of Finance (Offical Facebook Page)