By Muluken Yewondwossen
The Ethiopian Capital Market Authority (ECMA) has revealed plans to proceed with the sale of ten percent shares of Ethio Telecom before the finalization of public offerings and trading of securities directive, marking a significant milestone in the country’s economic landscape.
According to ECMA, the draft directive for public offerings was made available for public feedback for the second time on Friday. As the regulatory body overseeing the primary share market and the forthcoming secondary market, ECMA aims to facilitate the smooth transition of Ethio Telecom’s shares to the general public.
Director General of ECMA, Brook Taye, highlighted that the Capital Market Proclamation No. 1248/2021 enables the state-owned telecommunications giant to offer a portion of its shares to the public. This move is part of the government’s broader strategy to open up key sectors to private investment and enhance market competitiveness.
Recent discussions led by Ethiopian Investment Holdings (EIH), chaired by Prime Minister Abiy Ahmed and comprising current and former government officials and experts, assessed ECMA’s progress in preparing the market and the readiness of Ethio Telecom for share sales. PM Abiy Ahmed emphasized the government’s commitment to privatize 10 percent of Ethio Telecom’s shares, enabling Ethiopian citizens to participate in the ownership of the national telecommunications company.
Brook Taye reiterated ECMA’s support for Ethio Telecom’s partial privatization and emphasized the authority’s role in fostering market development. He revealed that ECMA is also assisting other private companies interested in listing on the future capital market, signaling a broader effort to diversify investment opportunities in Ethiopia.
In addition to facilitating share sales, ECMA has embarked on licensing capital market service providers, attracting interest from both local and international entities. Taye disclosed that a global investment advisory firm recently submitted an application to operate on the future Ethiopian Securities Exchange (ESX), underscoring growing international interest in Ethiopia’s capital market.
Furthermore, ECMA has taken proactive steps to safeguard market integrity and enhance technological capabilities through strategic partnerships. Two memorandums of understanding (MoUs) were signed on Thursday: the Capital Market Integrity Task Force Cooperation and Coordination Agreement, aimed at collaborating with law enforcement agencies to combat illicit activities, and a strategic partnership agreement with the Ethiopian AI Institute, National ID, and the Information Network Security Administration to enhance technology infrastructure.
These initiatives reflect ECMA’s commitment to fostering a transparent and robust capital market environment in Ethiopia, setting the stage for increased investor confidence and economic growth.
