Ethio Telecom to Offer 10% Stake to Local Investors via TeleBirr App











Ethio Telecom, the state-owned telecommunications company, has been granted a broker license by the Capital Markets Authority of Ethiopia, enabling the company to sell 10% of its stake directly to local investors through its TeleBirr application. This initiative marks a shift from the previously planned method of selling shares through the Ethiopian Securities Market.

According to Dr. Brook Taye, Chief Executive Officer of Ethiopian Investment Holdings, who spoke at the African Investment Conference in London on September 28, 2023, Ethio Telecom will begin offering shares starting from Wednesday, October 18, 2023. The decision to use the TeleBirr app for the sale of shares is intended to simplify the process and avoid the costs associated with an Initial Public Offering (IPO).

Share Offering and Market Development

The Ethiopian government had earlier indicated that 10% of Ethio Telecom’s total value would be made available for local stock buyers as part of its broader economic reforms. While the Ethiopian Securities Market was originally expected to manage the sale, the plan has been altered, allowing Ethio Telecom to facilitate the process independently through its digital platform.

Ethio Telecom’s broker license, issued by the Capital Markets Authority, permits the company to directly manage document-based transactions for the sale of its shares. This move comes in conjunction with the upcoming launch of the Ethiopian Documentary Market, which will officially begin its services next month and is expected to further develop the country’s investment landscape.

Financial Performance and Future Goals

Ethio Telecom, which is celebrating its 130th anniversary this year, reported earnings of 93 billion birr in the 2022 fiscal year. The company aims to increase this figure to 163.7 billion birr in the coming years as part of its long-term financial objectives.

The decision to offer shares to the public is part of the government’s broader strategy to increase private participation in state-owned enterprises, and it aligns with the country’s overall economic goals of expanding local investment opportunities.



Ethio Telecom’s decision to sell shares through its TeleBirr app represents a notable step in Ethiopia’s evolving financial system. By utilizing its own platform, the company aims to streamline the investment process for local investors. This move also highlights the Ethiopian government’s focus on enhancing public engagement in the country’s key industries as part of its broader economic reforms.











6 COMMENTS

TomM







October 15, 2024 At 4:24 pm













Thank-you for the helpful story. Should this sentence “Ethio Telecom will begin offering shares starting from Wednesday, October 18, 20232 read “..October 16, 2024”? The previous sentence also references 2023. Dr Brook Taye was at the African Financial Services Investment Conference )AFSIC) on 8 October 2024.

Thank-you for the helpful story. Should this sentence “Ethio Telecom will begin offering shares starting from Wednesday, October 18, 20232 read “..October 16, 2024”? The previous sentence also references 2023. Dr Brook Taye was at the African Financial Services Investment Conference )AFSIC) on 8 October 2024.

Asefa Bekele







October 15, 2024 At 4:25 pm













realy digitaal system which update by asefa bekele bassa.my carrent city …..wolayta soddo…mehal kifle ketema……

realy digitaal system which update by asefa bekele bassa.my carrent city …..wolayta soddo…mehal kifle ketema……

Ethio Telecom IPO today - African Capital Markets News







October 15, 2024 At 11:01 pm













[…] Telecom has been given a stockbroker licence so that it can sell shares to the public, according to this story on Addis Insight […]

[…] Telecom has been given a stockbroker licence so that it can sell shares to the public, according to this story on Addis Insight […]

Asefa Bekele







October 16, 2024 At 8:03 pm













thanks

thanks

Asefa Bekele







October 16, 2024 At 8:08 pm













thanks ,

thanks ,

Mohamed a nour







November 9, 2024 At 7:07 pm













Ok this good idea but we need very good information to study this shares to people of Ethiopia and lot of good information from the TV and the internet to

Ok this good idea but we need very good information to study this shares to people of Ethiopia and lot of good information from the TV and the internet to

Comments are closed.