Ethiopia: Ethio Telecom to Become First Company Listed On New Stock Exchange

11 October 2024
Daba Finance (Abidjan)

TLDR

  • Ethio Telecom to be the first company to list on Ethiopia's new stock market, selling a 10% stake as part of privatization efforts led by Prime Minister Abiy Ahmed.
  • Launch of the stock market marks a shift from over-the-counter trading to a more formalized market structure, with government planning to divest an additional 45% of Ethio Telecom in the future.
  • Safaricom, a consortium led by Kenya's telecom giant, now challenges Ethio Telecom's dominance in Ethiopia's telecom sector serving a population of approximately 120 million.

Ethio Telecom will be the first company to list on Ethiopia's newly established stock market next week as the government plans to sell a 10% stake, according to Brook Taye, CEO of Ethiopia Investment Holdings. This move marks a significant step in Prime Minister Abiy Ahmed's broader effort to privatize state-owned enterprises and open the country to private investment.

Currently, Ethiopia has only conducted over-the-counter trading, but the launch of the bourse signals a shift toward a more formalized stock market. The government intends to divest an additional 45% of Ethio Telecom in the future, with the 10% sale providing a baseline for valuation.

Ethiopia's telecom sector, serving a population of about 120 million, was long dominated by Ethio Telecom until Safaricom, a consortium led by Kenya's telecom giant, won the country's first private telecom license in 2022.

You can follow Daba's reporting on Africa on WhatsApp. Sign up here

Key Takeaways

Ethio Telecom's listing marks a significant milestone in Ethiopia's economic liberalization efforts, with the government opening the telecoms and financial sectors to greater private and international investment. The government is also considering relaunching the tender process for a second private telecom license, viewing the market as capable of supporting three operators. A new financial sector deregulation law is moving through parliament, which could lead to the entry of international banks, potentially transforming the country's banking landscape.

Read the original article on Daba Finance.

Tagged:
Copyright © 2024 Daba Finance. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 500 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.