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Djibouti Opens its Telecom Sector to Private Investors

August 6, 2021
3 min read
Author: Editorial Team

In a recent press release , The Government of the Republic of Djibouti has approved, during the Council of Ministers convened on July 11, a draft law defining the terms and conditions for the total or partial transfers of shares in state-owned capital in public enterprises.

In this context, the government announces the share capital opening of the historical national operator Djibouti Telecom to private investors. The State will offer a minority and significant portion of its shareholding to a first-rate strategic partner.

The opening of Djibouti Telecom’s share capital is a strong and additional sign of the government’s determination to implement a proactive policy to modernize the country’s economy, increase global competitiveness, and optimize the governance and management of State-Owned Enterprises (SOE).

The Republic of Djibouti, by employing the services of highly respected international advisors, will conduct this transaction with the highest rigor and transparency in the context of a competitive bidding process.

For 20 years, Djibouti has been implementing an ambitious development agenda and has established itself as a key logistics and services gateway between Asia, Africa, and Europe. In this context, Djibouti Telecom is strategically positioned to connect the region, the continent, and the rest of the world. It has state-of-the-art telecom assets (including the implementation of a 4G network) as well as a very important landing infrastructure of twelve high-capacity submarine cables (AAE-1, SMW5, Dare 1…).

The legal framework for this transaction, the potential in terms of local market growth, the hub strategy, international and regional connectivity, the development of new activities (data centers and mobile money…) offer a real long-term perspective.

This ambitious transaction should also result in direct positive consequences for Djiboutian citizens and businesses: optimization of the operator’s offer and services, access to voice and data services at the best international standards, among others. This project is also in line with Djibouti’s desire to rapidly develop an entire ecosystem linked to the digital economy, of which Djibouti Telecom would be one of the major players.

The Djiboutian State will remain a majority shareholder, committed to the company. It will propose clear and ambitious specifications to the private partner. The Djibouti State on its side is committed to strengthening the regulatory framework and ensuring the protection of Djibouti’s national strategic interests.

The urgency “to accelerate the pace of reforms concerning public sector companies, to better cope with international and regional competition, and to ensure that these companies participate fully in the national effort of emergence and development financing”.

Ismaïl Omar Guelleh, President of the Republic
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