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Ethiopia Opens Gates to Foreign Telecommunication Companies to Boost Economy via Competition

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8th July 2019
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Ethiopia has announced plans to issue licenses to foreign telecommunication companies in a bid to allow positive competition with the government.

The state revealed that two foreign companies would compete with Ethio-Telecom as it works to improve private companies’ participation in the country. As the country makes changes to its economy, the move will help in boosting private capital inflow to a great extent.

In a statement, the government said that they would also be privatizing some of the state-owned entities like Ethio-Telecom and sugar processing factories though partially.

“Privatization of the telecommunications sector will facilitate Ethiopia’s push towards a digital economy by closing gaps in digital infrastructure. It will also enable the introduction and expansion of new technologies,” read a statement issued by Ethiopia’s Ministry of Finance.

The country has set goals to achieve high-tech industrialization in a few years as it has made plans to have its internet connectivity speed upgraded by international operators.

 The state has further established a communication that will monitor, regulate, and license new Telecoms in that will come on board.

So far, various global tier-one telecom companies have shown their interests to start a business in the country, which has over 100 million residents.

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