Ethiopian Parliament Approves Telecom Privatization Bill

Ethio-TelecomJune 18, 2019 ( -- The Ethiopian parliament approved “Communications Service Proclamation” law. The law is meant to liberalize the Ethiopian telecom sector and establish a new telecom regulatory authority.

According to the new proclamation, telecommunications services, including ownership of a Telecommunications Operator or a Telecommunications Network, will be open to private domestic and foreign investors

Finance Minister Ahmed Shide said the government is preparing to privatize some state-owned entities. Minister Ahmed Shide further said Ethio Telecom will be split into two, according to FBC report. No further information was given as to how Ethio Telecom will be split, or the time table to achieve that goal.

Soon after taking office, the government of Prime Minister Abiy Ahmed disclosed its intentions to partially privatize some of the biggest state-owned firms, including Ethio Telecom, Ethiopian Airlines, Power and Logistics companies. However, no concrete steps have been taken until the latest proclamation.

"In the past, we have been actively involved in the economic affairs, but now we are rebalancing. We need to facilitate the sustainability of growth. We will first privatize four sectors: the telecom, aviation, energy and logistics, as well," Ahmed Shide said.

The plan to privatize some of these companies has been received well, especially by foreign investors. However, there are many Ethiopian who do not see the logic of privatizing companies like Ethiopian Airlines which are doing very well under state control.



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