Ethiopia’s Landmark Privatization: Ethio Telecom to List 10% Stake
In a historic move for one of Africa’s largest economies, Ethiopia is set to launch its new stock market with the partial privatization of its state-owned telecommunications giant, Ethio Telecom. The company, which has been the primary internet and telecom service provider for the nation’s 120 million people, will be the first enterprise to list on the bourse. This initial public offering represents a major step in the country’s broader economic liberalization agenda, signaling a new era for investment in the East African nation.
Opening the Market to Private Investment
The Ethiopian government has confirmed it will trade a 10% stake in Ethio Telecom on the new exchange starting next week. This initiative is a key part of Prime Minister Abiy Ahmed’s plan to open up state-owned enterprises and encourage greater participation from private investors. For years, Ethio Telecom operated as a monopoly, and this listing marks a significant shift in its structure. Following the initial 10% offering, the government plans to make a further 45% stake in the company available for purchase. According to officials, the performance and valuation derived from the initial 10% sale will provide crucial insight and help determine the framework for the subsequent, larger sale of shares. This phased approach allows the market to establish a fair value for the telecommunications behemoth.
The listing is a landmark event, not just for Ethio Telecom, but for the entire Ethiopian economy. It operationalizes the country’s new stock exchange and sets a precedent for the future privatization of other key state-owned assets. By unlocking a portion of its most valuable enterprises, Ethiopia aims to stimulate economic growth, enhance competition, and attract both domestic and foreign capital, fundamentally reshaping its economic landscape for years to come.
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