Ethiopia, a market of a hundred million people is opening up to the world by allowing foreign participation in its successful state-owned telecommunications company and airline for the first time.
The country will sell minority stakes to foreign and domestic investors in state monopolies such as Ethio Telecom and Ethiopian Airlines Enterprise , the continent’s biggest airline which already has turned the nation’s capital, Addis Ababa, into a global hub, linking almost 70 world cities with almost 60 across the continent.
The government will also allow investment in Ethiopian Shipping & Logistics Services Enterprise.
“Foreigners with knowledge and foreign capital can play a critical role in our growth,” government said.
Investors around the world see this as a move that indicates new Prime Minister Abiy Ahmed is more receptive to outside interests in Africa’s second-most populous nation and the move will challenge countries like Nigeria lagging in economic reforms.
Already South Africa’s MTN Group has said it was excited by the potential opening up of the Ethiopian market “as it would be a natural fit for MTN’s existing pan African footprint”.
“Ethiopia presents many exciting telecommunication opportunities and we look forward to further discussions with that nation’s authorities on potential partnerships and opportunities,” the mobile network provider told Reuters in an emailed response to questions.
The East African has long been a target of the biggest phone companies in Africa, including MTN Group Ltd. and Vodacom Group Ltd., the largest by sales and market value respectively.
The government has until now been strict about keeping the industries in-house, but there are signs it’s opening up to the world since Abiy’s rise to power earlier this year.
Reforms introduced by the Ethiopia along with investment in infrastructure projects like the $6.4 billion Grand Ethiopian Renaissance Dam helped the economy grow faster than any other in Africa over the past decade.
Ethiopia is expected to remain the fastest growing economy in the continent again this year, according to the IMF, which forecasts growth of 8.5 percent.
