Ethiopia’s Premier Urges Citizens to Invest in Ethio Telecom Shares

Prime Minister Abiy Ahmed (PhD) has made an impassioned call for Ethiopian citizens to invest in Ethio Telecom by purchasing shares, following the company's recent announcement to offer 10% of its shares to the public. This initiative represents a significant milestone for Ethiopia as it works towards the establishment of a more robust and active stock market.

During a launch event held yesterday, the Prime Minister emphasized the importance of Ethio Telecom, a state-owned enterprise that has proven to be highly profitable. By entering the stock market, Ethio Telecom is taking a major step forward in promoting economic growth and expanding opportunities for Ethiopians. Prime Minister Abiy urged citizens to seize this unique investment opportunity, as the country’s stock market begins to develop and gain traction.

In his remarks, the Prime Minister underscored the role of digital transformation initiatives in preparing for the share sale. He noted that these initiatives are crucial not only for the telecommunications sector but also for future investments in other industries, including hospitality and tourism. By fostering a digital environment, the government aims to enhance transparency, accessibility, and efficiency in various sectors, paving the way for greater public participation in the economy.

The share sale's first phase began today via the TeleBirr mobile payment platform, which was established to facilitate digital transactions in Ethiopia. The shares are priced at 300 Birr each, with a minimum purchase requirement of 33 shares, translating to a total investment of 9,900 Birr. This minimum investment amount is designed to make shares accessible to a wider audience, encouraging more citizens to participate in the ownership of this key national asset.

Ethio Telecom's CEO, Frehiwot Tamiru, announced that the company’s total share value is set at 100 billion Birr, with 10% of that value available for public sale until January 3, 2025. The share offerings allow for individual investments ranging from the minimum of 9,900 Birr (33 shares) up to a maximum of 999,900 Birr (3,333 shares). This structure is intended to attract a diverse range of investors, from small individual shareholders to larger institutional investors.

The move to sell shares of Ethio Telecom is a part of the broader economic reform agenda initiated by Prime Minister Abiy Ahmed, aimed at liberalizing the economy and promoting private sector participation. It is anticipated that this public offering will stimulate further investment in Ethiopia, encourage competition, and ultimately contribute to the country’s overall economic transformation.

As Ethiopia continues to embrace digital transformation and reform its economic landscape, this share sale is seen as a critical step towards enhancing public involvement in the nation’s economic future. By encouraging citizens to invest in their country’s largest telecom operator, the Ethiopian government aims to cultivate a culture of investment and enhance financial literacy among its populace. This initiative not only seeks to generate capital for Ethio Telecom but also strives to empower Ethiopians by involving them directly in the economic development of their nation.

Promoting investment opportunities in state-owned enterprises like Ethio Telecom serves several purposes. First, it enables ordinary citizens to become shareholders, thus giving them a stake in the profitability and success of key national assets. This ownership fosters a sense of pride and responsibility among citizens, encouraging them to stay informed about the performance of the company and the broader economic environment.

Furthermore, the government’s focus on financial literacy is crucial in equipping citizens with the knowledge and skills needed to make informed investment decisions. Through educational programs and resources, the government can help Ethiopians understand the fundamentals of investing, the risks and rewards involved, and the importance of diversifying their investment portfolios. This knowledge can empower individuals to participate more actively in the financial markets, leading to increased economic engagement and stability.

As the share sale progresses and more citizens become involved in the stock market, the government hopes to create a vibrant investment community that not only supports the growth of Ethio Telecom but also stimulates broader economic development across various sectors. This initiative aligns with Ethiopia’s long-term vision of becoming a regional leader in economic prosperity, innovation, and sustainable development. By fostering a culture of investment, the government aspires to drive economic growth, create job opportunities, and improve living standards for all Ethiopians.