Ethiopia’s parliament approved a draft law that enables foreign companies to invest in the telecommunications industry of Africa’s second-most populous nation.
The legislation establishes an independent communications regulator, accountable to the prime minister, that will be responsible for promoting competition.
Lawmakers on June 13 “approved into law the Ethiopian Communication Regulatory Proclamation,” Innovation and Technology Minister Getahun Mekuria said in a tweet. “This is a huge step in reforming the telecom sector.”
The legislation is the latest in a series of sweeping reforms Prime Minister Abiy Ahmed has implemented since he became leader in April 2018, as he seeks to loosen state control of the economy. He’s pledged to split the government-owned monopoly, Ethiopia Telecommunications Corp., and sell shares in the two new entities piecemeal to international operators.
Ethiopia offers a rare opportunity for foreign investors to access one of the continent’s biggest markets. With one of Africa’s fastest-growing economies and more than 100 million people, it’s coveted by firms including MTN Group Ltd. and Vodacom Group Ltd., the continent’s largest mobile-phone companies.
Some of the companies that have already shown interest in getting in the Ethiopian Telecom space include:
- Vodafone Group – Britain
- MTN Group – South Africa
- Etisalat – United Arab Emirates
- Orange – France
- Zain – Kuwait
- Safaricom – Kenya
