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Connecting Ethiopia - capital Newspaper
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Ethiopia licences consortium to liberate the telecom sector
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Ethiopia’s private sector is increasingly connecting to foreign markets. Export is promoted, foreigners are encouraged to invest here and joint ventures have become preferred business modalities. Tourism is promoted and the number of visitors from abroad is expected to increase. A growing number of investors, traders and producers are thus entering complex value chains that cross borders and continents, trying to meet demands in terms of quality as well as quantities, while keeping risks at a minimum. Production modalities need therefore to be able to meet the demands and be geared for quantity production, while the consistency of quality is maintained. This requires organization and management but it can be done.
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Ethiopia was one of the last countries in Africa to allow its national telco a monopoly on all telecom services including fixed, mobile, internet and data communications.
For many years Ethio Telecom’s monopolistic control stifled innovation, restricted network expansion and limited the scope of services on offer. However, in June 2019 the government approved legislation which will open the market to competition and provide much needed foreign investment. Two licenses are to be offered to two international operators, with a deadline set for February 2021. At the same time