Ethio Telecom is set to make history next week as the first company to list on Ethiopia’s newly established stock market, with the government offering a 10% stake in the telecoms giant, according to Brook Taye, CEO of Ethiopia Investment Holdings (EIH).
This move marks a significant milestone in Prime Minister Abiy Ahmed’s broader initiative to open up the country’s economy to private investment through privatisations and the creation of a bourse.
While Ethiopia has previously had companies listed, trading has been limited to over-the-counter transactions.
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The initial 10% stake sale in Ethio Telecom is seen as a precursor to the government’s plan to divest a further 45% stake in the company, one of the country’s largest state-owned enterprises.
“This initial sale will help us assess the valuation, which will be critical for the larger stake sale,” said Brook, whose firm acts as the government’s strategic investment arm.
Ethiopia’s telecom sector, which serves a population of approximately 120 million people, is viewed as a major asset in the government’s drive to attract foreign investment and modernize the economy.
The upcoming listing is a pivotal moment in the country’s economic reform efforts, signalling a new era of capital market development.
