Ethiopia’s government approved a draft legislation that allows foreign companies to invest in the telecommunications industry of the second-most populous country in Africa.
The law establishes an independent communications regulator, accountable to the prime minister, that will be responsible for promoting competition
Lawmakers have “approved into law the Ethiopian Communication Regulatory Proclamation,” Innovation and Technology Minister Getahun Mekuria said in a tweet. “This is a massive step in reforming the telecom sector.”
This change is happening at a time when Ethiopia’s planned sale of state-owned assets will help expand an economy that could be among the world’s fastest-growing over the next three years, Prime Minister Abiy Ahmed said.
The government has outlined proposals to sell stakes in companies including Ethiopian Airlines Enterprise and Ethio Telecom. The planned disposals are part of a strategy to attract investment to an economy that credit-ratings companies forecast will grow an annual average of more than 8 percent through 2021.
Ethiopia is undergoing “significant institutional reforms” to make it easier to do business, and increase private-sector investment to boost growth, Abiy has said. The government is seeking to achieve a “fast-paced, sustainable” expansion.
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