ADDIS ABABA – The Ethiopian Securities Exchange (ESX) has praised Ethio-telecom’s decision to sell 10 percent of its shares as a significant step towards Ethiopia’s broader privatization efforts.
Ethio-telecom, the country’s largest telecom operator, will soon begin selling its shares ahead of listing on the new Ethiopian Stock Exchange. This move is part of the government’s privatization strategy aimed at driving economic growth and transformation. The public will be able to purchase shares through Ethio-telecom’s mobile money platform, Telebirr.
ESX Chief Executive Officer, Tilahun Ismael (PhD), hailed the sale as a milestone in the nation’s privatization process, launched by Prime Minister Abiy Ahmed (PhD). “As Ethiopia embraces digital transformation and economic growth, this bold move is crucial for the country’s progress,” he stated.
The government’s “Digital Ethiopia 2025” strategy includes stimulating the economy and privatizing state-owned enterprises. Ethio-telecom will be the first company to sell its shares on the Ethiopian Stock Exchange, setting a precedent for other companies to follow.
Tilahun emphasized that Ethio-telecom’s dominance of the telecommunications sector over the past 130 years makes this step even more impactful, as millions of Ethiopians are expected to participate in the share purchase via the company’s digital platform.
This milestone marks a turning point in Ethiopia’s economic liberalization, with the government opening up the telecom and financial sectors to private and international investors. Ethio-telecom, which has played a key role in the nation’s socio-economic development, is accelerating its digital transformation with the launch of its three-year LEAD growth strategy.
The privatization drive in Ethiopia is part of a broader economic reform initiative spearheaded by Premier Abiy, aimed at liberalizing state-owned enterprises to boost investment and economic growth. The government has recognized that attracting private investment is essential for fostering innovation and efficiency in various sectors.
BY HAILE DEMEKE
THE ETHIOPIAN HERALD WEDNESDAY 16 OCTOBER 2024
