The government of Djibouti has issued a statement confirming its aim to sell what it terms a ‘significant minority’ stake in state-run national PTO Djibouti Telecom. The administration said the move forms part of a plan to open up the country’s telecoms market and modernise its economy, Bloomberg reports. Although the government has long hinted at its desire to privatise up to 49% of the company, internal restructuring has repeatedly delayed any share sale, and while there is still no official timetable for the telco’s privatisation or the level of the shareholding involved, it would appear there is fresh impetus to do so.
One of the last monopolies on the African continent, Djibouti Telecom offers wireless, broadband and fixed voice telephony services to around one million Djiboutians, while the country is also home to a host of submarine cables lying as it does at a key strategic location on the Horn of Africa. The government believes its national telco offers a great opportunity for strategic investors and pointed to potential expansion into mobile money services and data centres as future revenue streams.