Ethio Telecom, Ethiopia’s principal internet and service provider, is poised to make history as the first company to list on the country’s newly established stock market next week. This significant development marks a crucial step in the partial privatization of the state-owned enterprise, which has long held a monopoly over Ethiopia's telecommunications industry, serving an estimated 120 million people. The Ethiopian government plans to trade a 10% stake in Ethio Telecom, aligning with Prime Minister Abiy Ahmed’s broader strategy to expand investment opportunities for private sector participation.

Following this initial offering, a further 45% stake in Ethio Telecom will be made available for purchase by private investors. Brook Taye, the CEO of Ethiopia Investment Holdings, indicated that the timing for this additional sale would be determined after the 10% sale, stating, "This is something that we have to look into after the 10% sale because that will give us a sense of valuation." This phased approach underscores a careful strategy to manage the transition from state-control to a more privatized model.

Ethio Telecom's longstanding monopoly was first challenged in 2022 when a consortium led by Kenya’s Safaricom secured the country’s inaugural privatized telecom license. Despite this, Ethiopia Investment Holdings remains ambitious about the market's potential. Brook Taye reiterated the government's vision for a "three-operator market," particularly when considering the vast opportunities in B2B (Business to Business) and B2C (Business to Customers) sectors, along with the growing demand for broadband services for homes and offices. He emphasized the country's openness to receiving more investors, viewing this as a catalyst to reshape Ethiopia’s economy, actively welcoming interest from other operators.

Beyond telecommunications, the Ethiopian government is also preparing to extend its welcoming stance to private investors in the banking sector. Brook Taye confirmed that the country is open to both domestic and international investors. He anticipates that an act of parliament, expected within the next two to three months, will provide the legal framework necessary to facilitate the entry of external private banks into Ethiopia, signalling a major reform for the financial landscape.

Taye expressed optimism about attracting significant financial players, stating, "We’re hoping to see a significant number of continental giants operating in Ethiopia as private banks." He revealed that banks from neighboring countries, North Africa, and prominent West African institutions have already shown considerable interest, recognizing Ethiopia as a "huge market" capable of absorbing numerous foreign banks.

Ethiopia, characterized by a mixed economy system with a substantial presence of public-owned organizations, is undergoing a significant economic transformation. While sectors like telecommunications, banking, and transportation have traditionally been heavily dominated by government entities, the current initiatives mark a decisive shift towards greater private sector involvement. This monumental transition is set to reshape Ethiopia's economic trajectory, positioning it as a key area of anticipation for economic observers across Africa.