Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      MultiChoice hit with multimillion-rand fine for privacy ‘breaches’

      8 July 2025

      Still in play: Ramaphosa banks on talks to ease US tariff blow

      8 July 2025

      Apple’s AI ambitions rattled by defection to Meta

      8 July 2025

      Ramaphosa blasts Trump over threatened Brics tariffs

      8 July 2025

      Court battle brewing over contentious Joburg CCTV by-law

      7 July 2025
    • World

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025

      Grammarly acquires e-mail start-up Superhuman

      1 July 2025

      Apple considers ditching its own AI in Siri overhaul

      1 July 2025

      Jony Ive’s first AI gadget could be … a pen

      30 June 2025

      Bumper orders for Xiaomi’s YU7 SUV heighten threat to Tesla

      27 June 2025
    • In-depth

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025
    • TCS

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025

      TCS+ | First Distribution on the latest and greatest cloud technologies

      27 June 2025

      TCS+ | First Distribution on data governance in hybrid cloud environments

      27 June 2025
    • Opinion

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Ethiopia’s telecoms auction plan falters ahead of key meeting

    Ethiopia’s telecoms auction plan falters ahead of key meeting

    By Agency Staff22 November 2020
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    MTN Group CEO Ralph Mupita

    Ethiopia’s protracted privatisation process faces sticking issues as the government and prospective investors prepare to meet this week, with an escalating armed conflict starting to add to concerns.

    MTN Group, Africa’s largest carrier by subscribers, sees the investment case weakening due to uncertainty over whether international tower companies would participate and a mobile money licence be included, CEO Ralph Mupita said this week, adding that the group remains interested.

    Rival Vodacom Group said it’s monitoring the conflict between the government and the Tigray region before making its final decision, having earlier said it would bid in a consortium with Vodafone Group and Kenya’s Safaricom.

    The remarks indicate a more cautious approach from companies that have long expressed an interest in expanding in Ethiopia

    The remarks indicate a more cautious approach from companies that have long expressed an interest in expanding in Ethiopia, even before Prime Minister Abiy Ahmed proposed ending state-owned Ethio Telecom’s monopoly in mid-2018. Africa’s second most populous country with more than 100 million people is seen as one of the final frontiers for international operators, and French group Orange is another to have thrown its hat into the ring.

    “The potential remains, the question is really to what extent operators will be willing to acquiesce to the more onerous requirements of the state,” said Chiti Mbizule, a telecoms analyst at Fitch Solutions. “Political instability in the country also continues to pose a major risk not only to the pace of the reforms but also the attractiveness of the market.”

    On track

    Ethiopia’s government says the plan is on track. A public consultation with interested bidders is going ahead this week, according to Eyob Tekalign, the minister responsible for privatisation. The state wants to answer all questions investors might have before issuing a document outlining what it expects from companies in terms of cash and technical capacity, he said. The question of mobile money has been raised by the operators as it’s now a key part of most African telecoms business models.

    “There is nothing of concern at all,” Eyob said in response to questions about whether the Tigray war is having an impact.

    The sale of two new licences and a minority stake in Ethio Telecom had been set for early this year, but a combination of the Covid-19 pandemic, postponed national elections and a painstaking bureaucratic process have pushed the process back to February 2021. Terms of the auction and the regulatory framework haven’t yet been formally communicated to bidders. Safaricom, which would have a 51% share of the Vodacom consortium, said earlier this month it would submit an offer only after that happened.

    Orange declined to comment.

    Complicating the process further is the outbreak of war in the north of the country, which has seen hundreds of people die and thousands displaced since the start of fighting earlier this month. Abiy has rejected calls by foreign governments to negotiate a peace deal and the United Nations warned the situation could be spiralling out of control. The Internet has been shut off in Tigray, as it has been nationally on repeated occasions during times of strife.

    “It would concern operators that the incidence of state-compelled Internet shutdowns in times of political and social dissent have continued even under the new regime,” Mbizule said.

    The telecoms privatisation process was intended to kickstart a broader sale of state assets to help raise foreign exchange and boost the economy, with rail and industrial parks among the sectors slated for disposal. Of those, the auction of factories and land owned by Ethiopian Sugar was the furthest advanced at the start of the year, and Eyob said that also remains on track.  — Reported by Loni Prinsloo and Simon Marks, (c) 2020 Bloomberg LP



    Ethio Telecom Eyob Tekalign MTN Ralph Mupita Safaricom top Vodacom Vodafone
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleNikon to slash jobs on slump in camera business
    Next Article Altcoins soar as bitcoin powers toward record high

    Related Posts

    Sasol, Vodacom team up to modernise Secunda operations

    4 July 2025

    Vodacom’s influence on Maziv too strong to ignore: tribunal

    27 June 2025

    MTN – the network for networks

    25 June 2025
    Company News

    Stay warm this winter with Samsung’s energy-efficient air conditioners

    8 July 2025

    Huawei launches next-gen fibre-to-the-room solution

    7 July 2025

    Remote monitoring tools: IT lifesavers or hacker gateways?

    7 July 2025
    Opinion

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.