The largest state-owned company, Ethio Telecom, recently launched the sale of 10% of its shares, marking a significant milestone in the nation’s economic progress. During the launch ceremony, Prime Minister Abiy Ahmed (PhD) stated that this measure is an essential step in the ongoing journey from political revolution to evolution over the past six years. He emphasized the key reforms, including the development of Digital Ethiopia, have laid the groundwork for this moment, enabling progress across various sectors.
As part of the government’s “Digital Ethiopia 2025” strategy, which aims to stimulate the economy and privatize state-owned enterprises, Ethio Telecom will be the first company to sell shares on the Ethiopian Stock Exchange, setting a precedent for others to follow.
The first phase of the sale began last Thursday via TeleBirr, with shares priced at 300 Birr each. A minimum purchase of 33 shares is required, amounting to an investment of 9,900 Birr. Ethio Telecom’s CEO Frehiwot Tamiru announced that the company’s total share value stands at 100 billion Birr, with 10% allocated for public sale until January 3, 2025. Individual investments range from 9,900 Birr for the minimum package (33 shares) to a maximum of 999,900 Birr for 3,333 shares.
Ethio Telecom is one of the largest and oldest companies not only in Ethiopia but also on the African continent. It has dominated the telecommunications sector for the past 130 years, making this step even more impactful, as millions of Ethiopians are expected to participate in the share purchase via the company’s digital platform.
It is part of the “Big-5” group of state-owned corporations in Ethiopia, alongside Ethiopian Airlines, the Commercial Bank of Ethiopia, Ethiopian Insurance Corporation, and Ethiopian Shipping Lines. The telecom company has also proven itself to be the largest profit-making institution in terms of revenue and a leading taxpayer for the government.
This public sale is open to individual Ethiopians residing both domestically and abroad. It serves as an open call for all Ethiopians to become owners of this national asset. Investing in Ethio Telecom shares is a significant opportunity for every Ethiopian, fostering a sense of ownership in this substantial investment. Purchasing shares is akin to investing in one’s own wealth with the expectation of future profits. For this reason, Prime Minister Abiy extended his congratulations to all and encouraged all Ethiopians to participate in the nation’s economic progress.
This initiative not only fosters ownership among Ethiopians wherever they reside but also enhances the company’s competitiveness in the global stock market. Furthermore, this significant step and the involvement of Ethiopians in the process will enable the company to sustain its profit-making journey.
Additionally, the share-selling initiative empowers Ethio Telecom to expand its operations beyond Ethiopia, including markets like South Sudan and Djibouti. This expansion presents further opportunities for growth and enhances its global competitiveness.
The role of digital transformation initiatives has paved the way for this share sale, which hints at future opportunities in other sectors, including hospitality. Therefore, it is essential for Ethiopians to take action by purchasing shares and becoming owners of their country’s assets to realize comprehensive national development.
THE ETHIOPIAN HERALD SATURDAY 19 OCTOBER 2024
