Ethiopia postpones planned partial privatization of state-owned Ethio Telecom-Xinhua

Ethiopia postpones planned partial privatization of state-owned Ethio Telecom

Source: Xinhua| 2022-03-18 22:45:44|Editor: huaxia

ADDIS ABABA, March 18 (Xinhua) -- The Ethiopia Ministry of Finance announced on Friday it has indefinitely postponed plans to privatize 40 percent share of the state-owned firm Ethio Telecom.

In a press statement, the ministry said the postponement of the privatization process was taken in light of fast-moving macroeconomic changes, both globally and locally.

"The Government of Ethiopia believes that taking time to accommodate the improved macroeconomic situation as well as continually improving financial performance of Ethio Telecom will result in better value for all the parties involved and in particular the citizenry of Ethiopia," the statement said.

"The Government of Ethiopia remains committed to finalizing the privatization process and looks forward to re-engaging in due course with existing and additional parties that have expressed interest in the Request for Proposal (RFP)," the statement further said.

Ethiopia, Africa's second populous nation with an estimated 110 million plus population, in September 2019 launched a three-year-long homegrown economic reform plan designed to reduce external imbalances, contain debt vulnerabilities, lift financial repression, increase domestic resource mobilization which will also help devote adequate resources to pro-poor spending.

As part of the reform, Ethiopia plans to liberalize key economic sectors to attract more foreign direct investment(FDI) and modernize its agriculture-dominated economy.