Ministry Calls for Partial Privatization of Ethiotelecom


Ministry Calls for Partial Privatization of Ethiotelecom

The partial privatization of Ethiotelecom is reinstated as the Ministry of Finance announced for Request for Proposal (RFP) last week. The Ministry announced a 45pc stake in the public enterprise would be availed to private investors, and a five percent stake to be floated to the general public. The Ministry floated a bid to call for expression of interest last November. According to officials, the call is open to interested parties, and not limited to companies that have already submitted an expression of interest. In 2019, Prime Minister Abiy Ahmed’s (PhD) administration decided to partially privatize state-owned enterprises. A year later, Deloitte was hired as an advisor for the denationalisation of the state-owned telecom at a cost of 3.78 million dollars sourced from the World Bank. Ethiotelecom bagged 33.8 billion Br in revenues, showing a 20pc increase compared to the same period of the previous year. The net profit has reached 8.18 billion Br in the first half year of 2022/23. It has garnered 31.3 million internet users from a 70 million total customer base, showing a growth rate of 15.1pc from last year.


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Parliament Nods for Cabinet Appointments

Federal legislators have approved five cabinet-level positions last week with a member of Parliament (MP) voted against and two abstentions were counted. Gedion Timotheos (PhD) leads the charge as the new minister of Foreign Affairs, filling in Taye Asqeselassie's shoes, where he stayed briefly before becoming the country's president. With law degrees from Addis Abeba and Central European universities, Gedion was previously Attorney General and Minister of Justice. Joining him in the redev...


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Abyssinia Group Eyes Expansion with IFC Funding

Abyssinia Group of Industries (AGI), a leading East African steel producer, is poised for significant expansion owing to a proposed investment from the International Finance Corporation (IFC) which is considering a financing package of up to 50 million dollars, including parallel loans in local currency. Headquartered in Kenya, AGI operates two steel plants in Ethiopia, six in Kenya, and has mining activities in Uganda. AGI currently produces 660,000 metric tons of steel annually and employs...


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Fitch Acknowledges Easing Financial Pressures, Enhanced Macroeconomic Stability

Fitch Ratings has upgraded Ethiopia's Long-Term Local-Currency Issuer Default Rating (LTLC IDR) to 'CCC+' from 'CCC-', citing easing financing pressures, improved macroeconomic stability, and increased confidence that local-currency obligations will not be part of the ongoing debt restructuring. This positive development comes as the government implements key reforms and secures renewed concessional external financing. The ratings agency has taken note of the introduction of a market-based ex...


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