French telecom giant, Orange, has officially announced its decision to withdraw from the bid to acquire a 45% stake in Ethiopia’s leading operator, Ethio Telecom. This marks an end to Orange's initial interest, which began in 2021, when the company first expressed its intention to partake in the partial privatization of Ethio Telecom, a dominant entity boasting over 70 million subscribers and holding a historical monopoly in the Ethiopian market.

In a statement to Reuters, Orange confirmed its exit, stating, “Orange confirms that it has decided to withdraw from the ongoing process regarding the sale of 45% of Ethio Telecom.” Ethio Telecom further elaborated, adding, “After analysis, the Group believes that the conditions do not allow for the rapid deployment of our strategy and the completion of a project that would create value for the company.” This indicates that Orange found the prevailing conditions unsuitable for its strategic objectives and potential value creation from the acquisition.

Orange’s withdrawal occurs amidst Ethiopia’s ongoing efforts to liberalize its telecommunications sector, a key component of Prime Minister Abiy Ahmed’s economic reforms since 2018. Ethiopia, the second most populous country in Africa with approximately 120 million people, has seen its telecom industry become a major focus for these liberalization initiatives.

A significant milestone in this journey was achieved in May 2021, when a consortium led by Kenya’s Safaricom secured the first private license, introducing competition to Ethio Telecom for the first time. However, broader liberalization efforts have encountered impediments, including a two-year civil conflict in the northern Tigray region, which concluded in November 2022, and challenging macroeconomic conditions. More recently, the Ethiopian government cancelled a process to grant a second private telecom license, citing insufficient market interest, highlighting the complexities in attracting new entrants.

The process for privatizing a portion of Ethio Telecom has itself been marked by delays and adjustments. Ethiopia initially initiated a tender for a 40% stake in June 2021. The sale was subsequently delayed in March 2022 due to prevailing economic conditions. The privatization process was revived in November 2022, accompanied by an increased stake offer, which was the subject of Orange's withdrawn bid.

Regarding Orange itself, the company is a prominent French telecommunications firm and a significant global player in communication and connectivity. Headquartered in France, Orange traces its origins back to 1988, emerging from a restructuring of the French government’s postal and telecommunications services. Over the years, it transitioned from a state-owned entity to a publicly traded company listed on the Euronext Paris stock exchange under the symbol ORAN.PA. Orange offers a diverse portfolio of services, including mobile and fixed-line telecommunications, internet, and television, demonstrating a commitment to cutting-edge technology and reliable communication services for consumers and businesses alike.

While deeply rooted in France, Orange has established a substantial global footprint, operating in numerous countries, with a strong presence across Europe and Africa. Through strategic investments and collaborations, it has solidified its position as a key player in various national telecommunications markets. The company has consistently championed technological innovation, from deploying advanced mobile networks to introducing fibre-optic broadband, continuously striving to enhance connectivity and improve user experiences.

Orange’s success is also attributed to fruitful partnerships with content providers, technology companies, and other telecom entities, which have expanded its service offerings and market reach. Beyond commercial ventures, Orange places a strong emphasis on corporate social responsibility, engaging in initiatives focused on sustainability, digital literacy, and community development, reflecting its awareness of societal and environmental impact. As the telecommunications landscape evolves, Orange maintains a strategic vision to remain at the forefront of technological advancements, adapt to changing consumer needs, and contribute positively to the communities it serves.