The French telecommunications giant, Orange, has officially announced its decision to withdraw from the bidding process for a significant 45% stake in Ethiopia's leading operator, Ethio Telecom. This move marks a notable development in Ethiopia's ongoing efforts to liberalize its historically monopolized telecom sector.

Orange had initially expressed interest in 2021 to participate in the partial privatization of Ethio Telecom, an established entity serving over 70 million subscribers in Ethiopia. However, in a statement to Reuters, Orange confirmed its withdrawal, citing 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.”

Ethiopia's telecommunications industry, a key component of Prime Minister Abiy Ahmed’s economic liberalization agenda since 2018, has garnered significant international attention. As Africa's second most populous country with approximately 120 million inhabitants, Ethiopia presents a vast potential market. The initial step towards opening the sector occurred in May 2021 when a consortium led by Kenya’s Safaricom secured the first private license, introducing competition to Ethio Telecom.

Despite these efforts, the broader liberalization process has encountered several challenges. These include a two-year civil conflict in the northern Tigray region, which concluded in November 2022, and persistent macroeconomic difficulties. Further setbacks have emerged, such as the government’s recent cancellation of a process to award a second private telecom license due to insufficient market interest. The tendering process for a stake in Ethio Telecom itself has faced delays; initially launched for a 40% stake in June 2021, it was postponed in March 2022 due to economic conditions before being revived in November 2022 with an increased stake offer in February.

Orange, the company at the center of this withdrawal, is a prominent global telecommunications firm headquartered in France. Established in 1988, it has evolved from a state-owned entity into a publicly traded company, listed on the Euronext Paris stock exchange under the symbol ORAN.PA. Orange offers a diverse range of services, including mobile and fixed-line telecommunications, internet, and television, with a strong commitment to technological innovation like advanced mobile networks and fibre-optic broadband. The company maintains a substantial global footprint, particularly across Europe and Africa, and attributes its success to both internal capabilities and strategic partnerships. Beyond its commercial ventures, Orange emphasizes corporate social responsibility, engaging in initiatives focused on sustainability, digital literacy, and community development, reflecting its dedication to societal and environmental impact. The company remains focused on future advancements and adapting to evolving consumer needs in the dynamic telecommunications landscape.