Ethio Telecom becomes first non-financial listing on Ethiopian Securities Exchange

Ethio Telecom has officially begun trading on the Ethiopian Securities Exchange (ESX), becoming the first major non-financial company to join the East African nation’s fledgling capital market.

The listing follows the government’s partial privatisation of the telecom operator, during which 47,377 investors purchased 10.7 million shares worth 3.2 billion birr ($20 million).

The development marks a significant milestone in Ethiopia’s financial market reforms as authorities push to deepen domestic capital markets and expand investment opportunities in Africa’s second-most populous country.

Ethio Telecom had offered 100 million shares during the Initial Public Offering (IPO), but demand fell below expectations, with less than 11 percent of the shares on offer eventually sold.

Company executives previously attributed the lower participation to restrictions that prevented institutional investors and members of Ethiopia’s diaspora community from participating in the share sale, limiting the pool of eligible investors and constraining fundraising efforts.

Despite the subdued demand, the listing is viewed as a major step forward for Ethiopia’s emerging securities market and broader economic liberalisation agenda.

Ethio Telecom becomes the fourth company to list on the ESX, following earlier listings by Wegagen Bank, Gaada Bank and Awash Bank. Those lenders joined the exchange through listing-by-introduction arrangements rather than public share offerings.

The telecom operator’s debut is expected to draw greater investor attention to Ethiopia’s privatisation programme and ongoing efforts to modernise its financial sector.

Authorities have increasingly pursued reforms aimed at opening key sectors of the economy to private investment while strengthening domestic capital markets.