This should spice up the bidding if the process ever starts; tender for third national operator licence ends in September
European and Middle Eastern operator must be licking their lips. Ethio Telecom revealed its annual profits for 2022-2023 more than doubled to ETB18.8 billion (€308 million). Reuters reported the number of subscribers has increased by 8% to 72 million year-on-year and revenue grew 23% to ETB75.8 billion over the year.
Also, active users of its mobile money platform, Telebirr, rose from 27.2 million six months ago, to 34.4 million. This should be marvellous timing as in February, Reuters reported Ethio Telecom would offer a 45% stake to foreign investors, up from the 40% it said it would offer in November 2022.
Timing with no timetable
Earlier this month, Bloomberg reported the French telecoms group Orange, which has extensive operations in Africa, and UAE-based e& are considering entering the fray.
However, no timetable has yet been set for the sale, which was postponed due to the war in Tigray, in the north of the country, which ended in November 2022.
The idea is that foreign investment would enable the incumbent to compete more strongly against the second operator, known as Safaricom, which is a consortium of Vodafone, Vodacom and Safaricom. It began commercial services last year having won a mobile licence in 2021.
Aside from no timetable for the 45% stake in the incumbent, there is the added distraction of the ongoing tender for the third licence.
Third national licence tender ongoing
Earlier this month, Ethiopia’s communications authority (ECA) finally launched the tender for its second new nationwide telecommunications licence – also after many false starts. The aim is to bring more competition into one of Africa’s largest and still underserved markets with a penetration rate of just over half the population.
According to local reporting, Orange, e& and VEON are also reportedly interested in this opportunity. The tender will close in September.