The Ethiopian government intends to raise 30 billion birr ($255 million) as part of the IPO of the state-owned telecommunications company Ethio Telecom. This is reported in the press release of Ethiopia Investment.
Ethiopia Investment Holdings, which controls 27 state-owned companies, intends to sell 100 million shares of the country's largest mobile operator Ethio Telecom on the Ethiopian Securities Exchange after January 3. The company's shares will be sold on the telebirr mobile money platform.
The IPO will be an initial public offering that will launch the national stock exchange, taking into account the Ethiopian government's plans to sell shares in six companies within five years.
Ethiopia is the only one of the five largest economies in Africa that does not have a stock exchange. In April 2024, the government offered shares of Ethiopian Securities Exchange to institutional investors and received applications from FSD Africa, Trade and Development Bank, Nigerian Exchange Group, 16 local commercial banks, 12 insurance companies and 17 local investors.
In early 2024, the Ethiopian government lifted exchange rate controls and relaxed business rules in order to attract investment in East Africa's largest economy and rebuild the country. The lifting of exchange rate controls allowed the release of more than $20 billion, including a loan from the IMF in the amount of $3.4 billion, and the restructuring of Eurobonds in the amount of $1 billion.
Ethio telecom is the largest mobile operator with 78.3 million subscribers in Ethiopia. The company offers Internet, data transmission, VAS, international and voice services. The headquarters is located in Addis Ababa (Ethiopia).
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