Ethiopia Excludes Foreign Investors from State-owned Company’s IPO

Ethiopia has barred diaspora citizens and foreign investors from participating in its first-ever Initial Public Offering (IPO) for Ethio Telecom, the state-owned telecommunications giant. The Ethiopian government is attempting to raise $255 million by selling a 10% stake in the company through Ethiopian Investment Holdings (EIH). However, the authorities’ decision to exclude foreign investors could slow efforts to open up Ethiopia’s capital markets, a key part of Prime Minister Abiy Ahmed’s economic modernization strategy. Besides Ethio Telecom, the newly launched Ethiopian Securities Exchange (ESX) is expected to list at least 10 more state-owned enterprises by the end of 2025 – a move that is part of a broader push by Abiy’s government to attract foreign investments into key sectors.

SOURCE: TECH CABAL