MTN shuns Ethiopia amid war concerns

08 Aug, 2021 - 00:08 0 Views
MTN shuns Ethiopia amid war concerns

The Sunday Mail

Ethiopia’s revived plan to sell a second telecom licence to international operators received an early setback as Africa’s largest wireless carrier isn’t likely to resubmit a bid, according to people familiar with the matter.

MTN offered US$600 million (R8,6 billion) to enter Africa’s second most populous country earlier this year, only to be rejected by the Ethiopian government. And while the state has since adjusted the terms of the auction in pursuit of attracting a higher amount, MTN sees the investment risk starting to outweigh the benefits, said the people, who asked to remain anonymous as the deliberations are not public. MTN declined to comment.

Eyob Tekalign, Ethiopia’s state minister for finance, did not immediately respond to a phone call and text message seeking comment.  Ethiopia awarded one licence to a consortium including the UK’s Vodafone Group Plc in May, after accepting an offer of about US$850 million and a commitment to invest ten times that amount over the next decade. — Fin24.

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