Ethio Telecom will be the first company to list on the Ethiopian Securities Exchange (ESX), the country’s new bourse kicks off next week.
- •The government will sell a 10% stake in the state-owned telecoms company to the public, further diluting its stake.
- •The revelation was made by Brook Taye, CEO of the state investment arm Ethiopia Investment Holdings, to Reuters.
- •According to Taye, the listing will also be an experiment to determine the company’s valuation.
Ethio Telecom enjoyed a virtual monopoly until the government granted a license to Kenya’s Safaricom in 2022 as part of ongoing economic reforms to foster competition by privatising previously protected sectors.
In September, Ethio Telecom CEO Frehiwot Tamru said that the telco will aim for 75% growth over the next year by enhancing its existing services, launching new offerings, and expanding enterprise solutions.
The much-awaited launch of the ESX has received significant investor interest, surpassing its capital-raising phase by over 200% in April. The bourse is aiming to host an initial 50 listings as the country moves to boost its capital markets.
Brewing Reforms in Banking
According to Taye, Addis Ababa is still considering issuing another license to make it “a three-operator market.” It is also waiting for the country’s parliament to adopt a proclamation that will deregulate the financial sector in the next three months.
“We’re seeing banks in our neighbourhood looking at Ethiopia, we’re seeing North African banks looking at Ethiopia, and some of household banks in West Africa also looking at Ethiopia,” Taye added.