Ethiopia sells 10% stake in Ethio Telecom via IPO, raising $24M in first public offering to support telecom expansion and privatization drive.
[ADDIS ABABA — May 2025] — Ethiopia has raised 3.2 billion birr (about $24 million) from its first-ever initial public offering (IPO) of state-owned Ethio Telecom, marking a milestone in the country’s economic reform agenda.
The IPO ran for 121 days and closed on April 28, 2025, with 10.7 million shares sold at 300 birr each. The offering was managed by Ethiopia Investment Holdings (EIH), the government’s sovereign wealth fund.
Boosting Growth in Telecom Sector
The funds raised will help Ethio Telecom expand its infrastructure and improve service delivery as competition grows, especially from new players like Safaricom Ethiopia, a subsidiary of Kenya’s Safaricom PLC.
Originally, the government had planned to sell up to 100 million shares to raise 30 billion birr. However, only 10% of the shares were sold in this first phase, reflecting a cautious but strategic approach to privatization.
A New Era of Privatization
This IPO is a test case for Ethiopia’s broader push to open up state-owned enterprises (SOEs) to private investment. Other sectors, including banking, energy, and transport, are expected to follow.
“This sale shows investor confidence in the government’s reform plans,” said Dawit Mihretu, a policy analyst in Addis Ababa.
The initiative is part of efforts to reduce public sector dominance, attract private capital, and modernize key industries.
Growing Interest from Local Investors
The IPO attracted strong domestic participation, signaling rising trust in the government’s privatization plans and in the future of capital markets.
This offering comes just months after Ethiopia launched the Ethiopian Securities Exchange (ESX) in 2024, a platform designed to support IPOs and broaden investment options.
Looking Ahead
The government plans more IPOs in the coming years. Top candidates for future listings include:
By gradually opening up its economy, Ethiopia aims to attract foreign investment, boost economic growth, and create more jobs.
Bottom line: Ethiopia’s partial sale of Ethio Telecom is a strong signal of its commitment to reform. It lays the foundation for deeper market liberalization and stronger private sector growth.
