Ethio Telecom to kick off Ethopian stock trading with 10 per cent flotation next week
By Reuters |
Ethiopia's telecoms industry, serving a population of about 120 million, was considered a big prize in the government's efforts to open up the economy.
Ethio Telecom will become the first company to list on Ethiopia's new stock market next week when the government sells a 10% stake in the company, Brook Taye, the CEO of its owner Ethiopia Investment Holdings, told Reuters.
The establishment of a bourse as well as the privatisation of state-owned enterprises is part of Prime Minister Abiy Ahmed's push to open up the country to greater private investment.
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Ethiopia has listed companies, but so far trade has only been over the counter.
Floating 10% of Ethio Telecom also marks the first step towards the government divesting a further 45% stake in the telecoms provider to investors.
"This is something that we have to look into after the 10% sale, because that will give us a sense of valuation," Brook, whose firm is the strategic investment arm of the Ethiopian government, said.
Ethiopia's telecoms industry, serving a population of about 120 million, was considered a big prize in the government's efforts to open up the economy.
Ethio Telecom held a monopoly before a consortium led by Kenya's Safaricom won the country's first private telecoms licence and started commercial operations in 2022.
Brook also said the government was open to relaunching the tendering process for a second private telecoms licence.
"We still think that this is a three-operator market, especially when you add the B2B and B2C sector, and broadband services to houses and offices. It's a huge opportunity," Brook said.
"So we're still very much interested, and welcome any interest from operators."
Asked whether the government would grant more licences to international banks to operate in Ethiopia, Brook said a proclamation aimed at deregulating the financial sector and easing the path for new entrants was making its way through parliament.
"We're hoping that by the next two, three months, parliament would adopt or enact the new proclamation, and with that, we're hoping to see a significant number of continental giants operating in Ethiopia as private banks," Brook said.
"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. It's a huge market and we can absorb several foreign banks coming in."
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