Ethiopia has taken a significant step towards modernizing its state-controlled economy by launching the sale of shares in its historic telecom operator, Ethio Telecom.
The move, announced by Prime Minister Abiy Ahmed, marks the partial privatization of the 130-year-old company, offering ten percent of its shares to the public.
This is part of a broader effort to open up Ethiopia’s tightly controlled economy.
The partial privatization process was initially launched in 2021 but was temporarily halted due to economic challenges.
It has now resumed, with the aim of expanding access to ownership in one of the nation’s leading state-owned enterprises.
Privatisation is a key component of the economic reform package introduced by Prime Minister Abiy Ahmed in 2018.
Despite facing economic challenges, including armed conflicts, the Covid pandemic, and climate shocks, Ethiopia has registered robust economic growth in recent years.
However, the country still grapples with significant challenges, such as high inflation and a large population reliant on humanitarian aid.
The sale of Ethio Telecom shares is expected to contribute to the ongoing economic reforms and attract foreign investment.