Ethiopian carrier Ethio Telecom will kick off its plans to sell a 10 percent stake next week.

The planned sale comes ahead of the company’s listing on the country’s new stock exchange. Reuters reported this week that the state-owned telco will become the first company to list on Ethiopia’s stock market.

From October 16, the public will be able to buy shares on Ethio Telecom’s mobile money platform, telebirr.

In an invitation letter sent to the media, Ethio telecom announced the 10 percent stake sales will commence on Wednesday October 16, 2024. The inauguration will be held at Sheraton Addis on the day.

Ethio, which is the incumbent telco in Ethiopia, has long sought private investment.

The carrier was linked to reports that it could sell a 45 percent stake last year, with Orange and e& reportedly interested.

Reuters noted that the sale of a 10 percent stake will lead the way towards the government divesting a further 45 percent to investors.

“This initial public offering will help us to learn and strategize to facilitate the listing of other state-owned enterprises on the Ethiopian Securities Exchange,” said Brook Taye, chief executive officer of Ethiopian Investment Holdings.

The operator currently has more than 78 million subscribers, and until October 2022 was the only operator in the country until Kenya-based Safaricom launched in the market.

Ethiopia’s telecoms industry is seen as a huge asset in Prime Minister Abiy Ahmed’s push to drive the country’s economy, with the nation boasting a population of over 120 million.

Plans to introduce a third telco into the market, have also been explored and thought to still be a consideration for the government, which is interested in launching a mobile tender for a second private telco license.

(datacenterdynamics)