ET’s phone home

16 October 2019 By Ed Cropley Follow @edwardcropley

Prime Minister Abiy Ahmed is ending Ethio Telecom’s monopoly. A private partner will have to fund new kit, while new rival providers will squeeze super-fat margins. With 100 mln potential customers and perhaps a $5 bln valuation, it’s a big test for Ethiopian reforms.

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Ethiopia has appointed KPMG as an adviser for the partial privatisation of state monopoly Ethio Telecom, Reuters reported on Sept. 26.

Minister of Finance Eyob Tekalign Tolina said the government was also looking for another adviser to guide it through the issuance of telecommunication licences to two other private operators.

The sale of a minority stake in Ethio Telecom, which has 42 million customers, is the centrepiece of economic reforms touted by Prime Minister Abiy Ahmed.

Ethio Telecom generated EBITDA of 24.5 billion birr ($850 million) for the 12 months to June 2019, on revenue of 36.3 billion birr.

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