Ethio Telecom Sells 10% Stake Through Mobile Money Platform in Landmark Sale

Ethiopia's state telecom operator, Ethio Telecom, is moving forward with its long-anticipated privatisation by offering a 10% stake in the company through its mobile money platform, Telebirr. This marks a novel approach to share sales in Ethiopia — using a mobile wallet to distribute shares to citizens.

The process kicked off on 16 October, although some technical issues — including a non-working link on the day of launch — have created uncertainty among potential investors. Despite this, the offering is considered legitimate and in line with government plans.

This share sale via Telebirr does not coincide with the immediate launch of Ethiopia's new securities exchange; rather, it is a precursor. Once the subscribe phase is complete, the shares are expected to be listed for secondary trading on the upcoming exchange.

Brook Taye, CEO of Ethiopian Investment Holdings — the government's investment arm and majority owner of Ethio Telecom — emphasized that this IPO (initial public offering) is an important first step. It's intended not just to raise capital but also to build capacity and experience in managing public share sales ahead of broader listings of other state-owned enterprises.

There has been media confusion over timing — some reports suggested that Ethio Telecom would be the first company listed just as the exchange launches. However, authorities, including the exchange itself, clarified that while the IPO is underway, the securities exchange is not launching immediately. The IPO shares will be offered first, and later those shares will trade on the exchange once operational.

After this initial share sale and successful listing, Ethio Telecom is likely to return to negotiations with potential foreign investors to explore additional stake sales. Earlier discussions included interest from companies such as Orange and e&.