Ethiopia puts Ethio Telecom sale on ice

Ethiopia puts Ethio Telecom sale on ice

Ethiopia has postponed plans to sell part of state-owned operator Ethio Telecom due to macroeconomic changes domestically and globally.

The finance ministry said in a statement posted on Twitter: "Given the recent developments and fast-moving macroeconomic changes, both globally and from a country perspective, the government of Ethiopia has chosen to postpone the privatisation process.”

"The government believes that taking time to accommodate the improved macroeconomic situation as well as continually improving the financial performance of Ethio Telecom will result in better value for all the parties involved."

The government added it is still committed to privatising Ethio Telecom and will touch base with those that have registered an interest in the 40% stake to be put up.

Ethiopia is currently going through turbulent times as government troops battle against rebels in the Tigray region.

The government recently sold one of its two full-service licences in May to a consortium made of Safaricom. Vodafone and Japan-based Sumitomo. It is currently setting up its network for a commercial launch next month.

The consortium is reportedly in talks with Ethio Telecoms to strike a network sharing agreement to make its launch deadline.

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