The Council of Ministers unanimously authorized the Ethiopian Communications Authority (ECA) to grant a new nationwide telecom license to the Global Partnership for Ethiopia which offered the highest licensing fee and a very solid investment case.
Global Partnership for Ethiopia is a consortium of Kenya’s Safaricom, UK’s Vodafone and CDC groups as well as South Africa’s Vodacom Group and Japan’s Sumitomo Corporation. The total license fee from the consortium was 850 million USD and the investment is expected to provide 1.5 million jobs within ten years.
In his social media post in connection with the historic event, Prime Minister Abiy Ahmed (PhD) said that with over eight billion USD total investment over the next ten years, the consortium’s involvement will be the single largest FDI into Ethiopia to date.
“Our desire to take Ethiopia fully digital is on track. I would like to thank all that have taken part in this and for pulling off a very transparent and effective process,” the Premier added. Quoted by the Ministry of Finance press statement, ECA Director-General Balcha Riba (Eng.) said on his part that the measure ushers in a new era of telecom service
development in the country which will benefit millions of Ethiopians to have access to quality and reliable communications services. Global Partnership for Ethiopia is a consortium of reputable telecom companies providing service to over 750 million customers across the world and committed to create new jobs, support the economy through introduction of new and efficient services, the director-general added.
Bacha said, “The entry of a new operator signals the government’s commitment to the reform agenda introduced two years ago as part of the Homegrown Economic Reform program, an ambitious and far-reaching package of economic reforms aiming to transform Ethiopia’s economy.” The economic reform program aims to create millions of jobs through private-sector led growth, to develop manufacturing and other sectors, and to encourage foreign direct investment.
It is to be recalled that South Africa’s telecommunications giant MTN Group Limited, supported by a Chinese Investment Fund Silk Road Fund, had also bid for the telecom license. The Government of Ethiopia has found the 600 million USD MTN Group offered to a nationwide telecom license unsatisfactory and rejected the proposal, it was learnt.
Source: press.et
