Politics
Frehiwot Tamiru's Transition Sparks Telecom Governance and Competition Concerns
Wazema · 2 hours ago · Read the Full Story on Wazema
AI SUMMARY
The appointment of former Ethio Telecom CEO Frehiwot Tamiru as Minister of Innovation and Technology and Ethio Telecom board chair has sparked legal and market competition concerns.
- Frehiwot Tamiru led Ethio Telecom as CEO for eight years before being appointed as the Minister of Innovation and Technology.
- Following her ministerial appointment, she was named Chairperson of the Ethio Telecom Board by Ethiopian Investment Holdings CEO Brook Taye.
- Tariku Demise, the former Senior Deputy CEO, was appointed as the new CEO of Ethio Telecom.
- Legal experts argue that the appointment violates Article 15 of Public Enterprises Proclamation No. 1314/2016, which prohibits former employees from serving on the board within three years of leaving.
- Critics state that having a former CEO serve as board chairperson undermines independent oversight and creates conflicts of interest.
- Concerns over entering Ethiopia’s telecom market persist, with Safaricom’s past disputes with Ethio Telecom over infrastructure lease payments and high rental rates cited as a potential deterrent to new entrants.
- Ethio Telecom and Safaricom experienced a dispute in December 2022 when Ethio Telecom accused Safaricom of damaging its underground fiber optic cables.
- The World Bank reported that Ethio Telecom blocked the M-PESA app, concluding that the Ethiopian telecom market lacks fair competition in practice.
- Recent structural reforms placed the Ethiopian Communications Authority under the direct supervision of the Ministry of Innovation and Technology.
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