Ethiopia’s second telco license likely to ignite global investor interest

The prospect of a second private telecoms licence in Ethiopia comes after a massive previous bid by regional giant MTN failed

Addis Ababa, Ethiopia | BIRD AGENCY | Ethiopia’s July 1 unveiling of a tender for a second new telecommunications license opens Africa’s second-largest market to more competition and comes after its market-liberalising test run with Safaricom hit pay dirt.

“There are several positive developments occurring in the Ethiopian telecommunications sector since the beginning of the liberalisation process,” the Ethiopian Communications Authority said in a request for qualifications (RFQ) notice.

The tender follows regional mobile giant MTN’s unsuccessful attempt in 2021 to secure a license despite placing a substantial US$600 million bid.

The staggering size of the bid underscored the appeal of Ethiopia’s mobile phone and internet market, supported by its immense consumer market of 120 million people.

The issuance process for a second license resumed last November, focusing on gathering feedback from sector actors through public consultation.

By courting international players, Ethiopia is betting on the telecom sector’s potential to create direct and indirect jobs, boosting employment opportunities in a country with a growing young population.

In June, the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) announced an equity investment, loan and guarantees to support the ongoing construction and operation of Safaricom Ethiopia’s greenfield telecommunications network across Ethiopia.

According to the World Bank, this investment is expected to enable more affordable internet access, reliable mobile connectivity, and improved technology availability for individuals and businesses in Ethiopia.

The influx of global investment and expertise into the nation’s telecoms sector is expected to significantly boost not only the telecom sector but also Africa’s digital future.

*****

SOURCE; Seth Onyango, bird story agency