Ethiopia’s government launched a sale of shares in Ethio Telecom on Wednesday.
This action is seen as a significant milestone in modernizing the economy.
The country plans to sell 45 percent of the publicly-owned telecom operator.
Last year, officials announced their intent to open up the telecommunications sector.
Prime Minister Abiy Ahmed stated that ten percent of shares will be offered to the public.
He emphasized this move lays the groundwork for Ethiopia’s future stock market.
Originally launched in June 2021, the privatization process faced challenges in 2022.
It was halted due to economic difficulties but resumed at the end of last year.
This initiative is part of Abiy’s broader economic reform package initiated in 2018.
Despite the reforms, Ethiopia continues to face serious economic challenges.
The country has about $28 billion in external debt and high inflation.
Over 21 million people depend on humanitarian aid amid ongoing conflicts and climate disasters.
In May 2021, Ethiopia issued a second telecommunications license to Safaricom.
This decision ended Ethio Telecom’s monopoly and encourages competition in the sector.
The move aims to stimulate growth in Ethiopia’s telecommunications industry.
