Abiy Ahmed - Afrikan Heroes

Ethiopia Opens Process to Sell 40% Stake in Ethio Telecom

June 15, 2021

The Ethiopian government has announced for a tender process for the sale of a 40% stake in state-owned telecommunications company, Ethio Telecom. That means potential investors can now register their interest starting Tuesday. This is the first stage in a lengthy process that will lead to the selection of a successful bidder. The proposed minority sale of the carrier is part of a broader plan to liberalise the country’s monopolistic telecoms sector. In addition, two foreign carriers are to be granted licenses to operate in the hugely untapped market.

“The government wants state-owned enterprises to be competitive and productive, the authorities’ motivation for selling a part of Ethio Telecom to private operators,” Deputy Director of Public Enterprises, Holding and Administration Agency, Zinabu Yirga, said at a press conference in the capital Addis Ababa on Monday. “As part of the broader opening up of the sector, Ethiopia is also moving to license private operators to compete with Ethio Telecom.”

Announced in 2019 and driven by Prime Minister Abiy Ahmed, the liberalisation plan has been met with several delays caused by the coronavirus pandemic and an internal crisis in the Tigray region. However, the plan has gathered pace over the past six months. In May, the government awarded one of the two available private operating licences to break up Ethio Telecom’s monopoly on the sector.

The Global Partnership for Ethiopia, a telco-consortium led by Kenya’s Safaricom, was announced as the winner after a successful bid of around $850 million. Meanwhile, a second offer of around $600 million from South Africa’s MTN Group was deemed too low by the regulator, which is now preparing to reauction the final licence.

According to Brook Taye, a senior advisor at the finance ministry, the 40% in Ethio Telecom will be sold as a single stake to a single investor. It is however unclear how much the stake would be worth but the tender process is sure to attract significant interest from many telcos around the world.

This is due to the attractiveness of Ethiopia’s untapped telecoms market. In a population of over 100 million people, only about 20% have access to the Internet, less than 40% have a mobile phone and only 5.8% of the people use social media, according to a report from DataReportal.

Founded in November 2010, Ethio Telecom currently has around 53 million subscribers and has since December generated revenue of around $600 million. According to reports, the government plans to retain a 55% stake in the operator while the remaining 5% will be offered to domestic investors through an initial public offering.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

How Safaricom Won Ethiopia’s Telecoms Operating Licence for $850 Million

May 25, 2021

East Africa’s leading Telecoms Company along with its parent company Vodafone has been awarded one operating licence by Ethiopia’s telecommunications regulator at the cost of $850 million. This was announced via a tweet by the Ethiopian Prime Minister Abiy Ahmed saying that “The Council of Ministers has unanimously made a historic decision today allowing Ethiopian Communications Authority 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.”

Dr. Abiy Ahmed, Ethiopia's prime minister — Dr. Abiy Ahmed, Ethiopia’s prime minister

The consortium – led by Safaricom – plans to invest up to $8.5 billion in infrastructure as well as create up to one and a half million jobs.

Ahmed adds, “With over $8 billion total investment, this 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.”

At this stage, there is still one more telco license up for grabs. Balcha Reba, director-general of the Ethiopian Communications Authority, says they plan to open a bid for this license soon and Africa’s largest telecoms company MTN is expected to bid on the remaining license.

MTN Group initially bid $600 million on the first available operating licence, an amount far below what was paid by Safaricom. However, this does not mean the telco is out of the running just yet.

Finance ministry adviser Brook Taye says “we always wanted quality providers and this is what we have received,” adds Taye. “These are two African giants — the Safaricom and MTN — either one or two of the operators will get a licence in Ethiopia.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

‘Africa to become global economy’s linchpin’ Says Ethiopian PM

March 24, 2021

Africa’s future depends mostly on its ability to embark on digital transformation, and run a climate-smart economy. This was the submission of the Ethiopian Prime Minister Abiy Ahmed who said that if the continent wants to compete for the future, it has to start working assiduously towards achieving digital transformation, a climate-smart economy, and an enabling institutional structure.

Abiy Ahmed made the remarks in his opening address to a conference of African ministers of finance, planning and development as part of the 53rd session of the UN Economic Commission for Africa (ECA).

“There is no doubt that Africa will overtime be a vital linchpin to the global economy,” said the 2019 Nobel laureate. “However, it must do these three things well and quickly to improve its chances of success.”

“We must scale up our investments – a trend already turbocharged by the COVID-19 pandemic. The digital economy is both a source of growth and a key competitive enabler of other productive sectors,” he said.

The ECA annual event – skipped last year due to the pandemic – was launched last Tuesday under the theme “Africa’s sustainable industrialization and diversification in the digital era in the context of COVID-19.”

“The second goal that every African country must adopt is making our economies climate-smart and resilient in diverse ways,” he said, calling for a climate-smart manufacturing sector to drive increasing exports and foreign currency earnings and create employment opportunities.

Africa, he said, must also put in place resilient institutions capable of implementing reforms to help the continent withstand the challenges of the future. Digital transformation is a key driving force for innovation and sustainable growth that can transform Africa into a global powerhouse, said the prime minister.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Ethiopia’s Prime Minister Abiy Ahmed, wins 2019 Nobel peace prize

October 11, 2019

For taking the route less traveled, for being humble enough to recognize that leadership is service, for cutting a figure that is quite in contrast to what obtains mostly in Africa where leaders want to be seen as demigods, for seeking peace, even at the expense of his office and life, the prime minister of Ethiopia, Abiy Ahmed was roundly acknowledged as desirous of winning this year’s Nobel peace prize. And the Norwegian Parliament did just that, by awarding the Prize to him.

New Zealand prime minister, Jacinda Ardern

He won the coveted prize beating other potential winners considered in the running for this year’s prize which includes the 16-year-old Swedish climate activist Greta Thunberg, Angela Merkel, the German chancellor, and Hong Kong activists. Another figure who was considered was the New Zealand prime minister, Jacinda Ardern principally because of her response to the Christchurch shooting in her country and also Alexis Tsipras and Zoran Zaev, the prime ministers of Greece and North Macedonia, who ended 30 years of acrimony between their countries. Ninety nine Nobel peace prizes have been awarded since 1901, to individuals and 24 organisations. While the other Nobel prize laureates are announced in Stockholm, the peace prize is awarded in the Norwegian capital, Oslo.

Since his election as the Prime Minister after the surprising resignation of the former Prime Minister last year, Abiy has pushed through reforms at home, dramatically changing the atmosphere in what was known as one of the more repressive states in Africa.His public renunciation of past abuses by previous rulers drew a line between his administration and those of his predecessors, as did the appointment of former dissidents to senior roles, as well as large numbers of women. Abiy according to observers brought something different to power, intelligent, suave, young, cyber-nerd and humane. And he has generously deployed all these attributes to drive change in his country working through government institutions. Being the first Prime Minister from Ethiopia’s most populous ethnicity, Oromo who for decades have complained over economic,cultural and political marginalization, he came into office breaking stereotypes and myths by appointing more women into high-profile jobs than any other Prime Minister in the history of Ethiopia.

As part of his bridge building efforts, he lifted bans on political parties,releasing imprisoned journalists and firing series of hitherto untouchable officials, some accused of torture. Moreso, we campaigned for the planting of millions of tress which further won him international support and recognition.The Norwegian Nobel committee said the award recognised Abiy’s “efforts to achieve peace and international cooperation, and in particular his decisive initiative to resolve the border conflict with neighbouring Eritrea” which has lingered for over two decades years leading to a bloody war. Moreso, Abiy has pushed for political and economic reforms on all fronts, seeking for peace within Ethiopia by granting generous concessions to many of the ethnic groups agitating for autonomy and independence.

According to the Nobel peace prize website, 301 candidates had been put forward for this year’s award. However, the committee does not announce the names of nominees until 50 years have passed.

Abiy, 43, has forged a reputation as a daring leader prepared to take risks to tackle decades-old problems. A former military officer specialising in cyber intelligence, the peace deal with Eritrea surprised and delighted tens of millions of people across East Africa. The conflict had cost both countries dearly in lives and scarce resources, and was a brake on development across much of the volatile region.

Born in western Ethiopia, Abiy joined the resistance against the regime of Mengistu Haile Mariam as a teenager before enlisting in the armed forces,reaching the rank of lieutenant-colonel. He has a doctorate in peace and security studies. After a stint running Ethiopia’s cyber-intelligence service,he entered politics eight years ago and rose rapidly up the ranks of the Oromo faction of the EPRDF, which has historically been at odds with the Tigrayans.

Analysts say Abiy’s mixed Christian and Muslim background, and fluency in three of the country’s main languages allow the new leader to bridge communal and sectarian divides. One personal acquaintance described the new Nobel Laureate as “always looking ahead for the future”shortly after Abiy survived an apparent assassination attempt in 2018. Former colleagues said shelves of books on religion, philosophy and science filled Abiy’s office. “He is physically active and very well organised … He did not have a secretary because he wanted his office to be accessible.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Be Patient, Ethiopia’s Prime Minister Tells Ethnic Groups Calling for Secession

September 16, 2019

The Prime Minister of Ethiopia Mr Abiy Ahmed has urged ethnic groups in in the country demanding for secession to be patient and join him to build the country into a great nation. He made the plea yesterday during a visit to leaders of the Kafficho ethnic group who requested for a new federal state to break away from the Ethiopian federation. Observers say that the growing number of ethnic groups asking for full independence has created an atmosphere of uncertainty further heightening the destabilization of the very diverse southern region. Addressing the people, the Prime Minister said that “you think that there will be many problems in your problems, there are many interrelated and systemic issues that need to be considered.”

It could be recalled that the country’s southern region was rocked by violence two months ago following a similar campaign by the Sidama ethnic group. These ethnic nationalities are keying into the constitutional requirements in Ethiopia’s Constitution mandating the government to organise a referendum for any ethnic group that wants to form a new entity. As at the last count, about 11 groups have submitted such bids in the south.

In another development, opposition political parties in the country have threatened to boycott national elections scheduled for next year if changes to an electoral law they view as biased towards the ruling party are not made. There have been regular parliamentary elections since the Ethiopian People’s Revolutionary Democratic Front (EPRDF) took power in 1991 but, with one exception, none were competitive. One of the key changes the opposition parties pointed out is that one of the amendments raised the number of signatures to register a national party to 10,000, up from 1,500. Regional parties will need 4,000 signatures, up from 750. Aside that, they also complained about the new rule requiring civil servants running for office to take leave without pay.

The current Prime Minister, Abiy Ahmed was appointed last year by the EPRDF after three years of anti-government protests, promising reforms including a credible multi-party poll in 2020. The new reforms some of the political parties say were approved in a rush without addressing their demands being met. They however, say that last month’s changes to the election law in parliament, where the ruling party holds all the seats, made it more difficult for them to actively participate.

Observers say that Ethiopia’s political reforms have been threatened by ethnic rivalries. It could be recalled that violence which erupted in some of the regions could lead to serious delays of the elections as many people were forced to relocate from their communities. Inspite of the political and ethnic tensions, the Prime Minister was quoted as saying that his government will continue to engage the people even as political reforms and freedom for journalists and activists will be a continuous process.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.