MTN plans to foray into Ethiopia, considers it as ‘rare new market’

MTN Group, which is considered one of the largest telecom carriers in the world, is ogling Ethiopia, considering the East African country as a rare new market.

South Africa's Johannesburg-based MTN Group Ltd. has identified Ethiopia as a rare country where Africa's largest wireless carrier will consider expanding beyond its existing footprint.

"There are a few large markets that are under-penetrated and where there is scope for a No. 1 or No. 2 operator, like Ethiopia," Chief Executive Officer Rob Shuter said in an interview at Bloomberg's London office. "That's obviously one where we would be really excited to participate, in some way," Shuter added.

Last year, the Prime Minister of Ethiopia, Abiy Ahmed said that he was considering to bring in private investors to the country's telecommunications sector for the first time. Vodacom Group Ltd. has also shown interest to venture into the Ethiopian market that is currently under Ethio Telecom's monopoly.

The move would fit with the Shuter's strategy to focus on markets in which the carrier can be a major player, and where there's an opportunity to seize on a consumer shift to mobile banking and other data services from voice. He has been pulling MTN out of regions that don't fit that strategy and is looking to sell holdings where it doesn't have a controlling stake, Bloomberg noted.

The company has also identified various e-commerce assets for disposal, and this week announced the sale of its interests in investment fund Amadeus and flight-booking site Travelstart to HarbourVest Global Private Equity Ltd. for 1.2 billion rand (USD 81 million).

"We have about one-third of our capital in assets that we've identified as not long-term strategic," Shuter added.

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