The US International Development Finance Corporation (DFC) has announced that it intends to loan up to 500 million USD to a consortium of companies for the financing of a new network operator in the rapidly liberalizing Ethiopian telecom sector. The companies will be headed by the British telecom giant Vodafone Group Plc.
The corporation stated that the loan will be used to fund operations for the acquisition of a telecom license and the design, development, and operation of the network operator. The establishment of the operator is expected to have a positive impact on connectivity in Ethiopia.
Chief Executive Adam Boehler asserted that this and similar initiatives will help facilitate the digital market’s contribution to the economies of developing countries, especially given the role that the sector has played in the response to the COVID-19 pandemic.
The untapped potential of the Ethiopian telecom sector has been of interest to investors all around the world since plans to provide license for two new telecom operators and other liberalization reforms of the extremely closed off market began.
The deadline for bids for the two licenses is set for March 5th of 2021.