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Ethiopia is set to make history by listing 10% of Ethio Telecom on its newly established stock exchange, marking the first company to go public in the country. This partial privatization allows investors to purchase a stake in the state-owned telecom giant, with an additional 45% expected to be offered to private investors in the near future, according to Brook Taye, CEO of Ethiopia Investment Holdings.
Ethio Telecom, which has long dominated the country’s telecommunications market, encountered competition for the first time in 2022 when a consortium led by Kenya’s Safaricom was awarded Ethiopia’s first private telecom license. Despite this new competition, Taye affirmed that Ethiopia remains an attractive and expansive market capable of supporting multiple operators.
“We believe Ethiopia can support at least three major operators, especially with the growing demand in both B2B and B2C sectors, along with increasing broadband needs for homes and businesses. This represents a significant growth opportunity,” Taye stated.
The Ethiopian government’s initiative is part of a broader strategy to liberalize its telecom sector, encourage competition, and modernize the nation’s telecommunications infrastructure. Taye also highlighted that Ethiopia remains open to further investment from new operators, signaling a continued effort to foster a competitive environment.
Alongside the telecommunications reforms, Ethiopia is also opening its banking sector to private investment. Several banks from North Africa, West Africa, and neighboring regions have already expressed interest in entering Ethiopia’s financial market. The entrance of foreign banks is anticipated to transform the country’s financial sector by increasing access to capital and enhancing the efficiency of its banking services.
This liberalization drive is expected to stimulate economic growth and elevate Ethiopia’s position as a key player in the region’s telecom and financial industries. Legislation allowing foreign investors to participate in these sectors is expected to pass in the Ethiopian parliament within the next two to three months.
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