ECMA Launches Ethio Telecom Share Sale
Ethiopian Capital Market Authority (ECMA) Announces Plans to
Initiate Ethio Telecom Share Sale Ahead of Public Offerings
In a significant development for Ethiopia's economic
landscape, the Ethiopian Capital Market Authority (ECMA) has unveiled its
intentions to proceed with the sale of a ten percent stake in Ethio Telecom
prior to finalizing public offerings and trading of securities directives. This
move marks a pivotal milestone in the country's economic agenda.
The ECMA disclosed that the draft directive for public
offerings underwent a second round of public feedback on Friday. As the
regulatory body overseeing both the primary share market and the impending
secondary market, ECMA is committed to facilitating a seamless transition for
Ethio Telecom's shares into the hands of the general public.
Brook Taye, Director General of ECMA, underscored the
significance of the Capital Market Proclamation No. 1248/2021, which empowers
the state-owned telecommunications giant to offer a portion of its shares to
the public. This initiative aligns with the government's broader strategy to
foster private investment in key sectors and bolster market competitiveness.
Recent discussions spearheaded by Ethiopian Investment
Holdings (EIH), chaired by Prime Minister Abiy Ahmed and comprising current and
former government officials and experts, assessed ECMA's progress in market
preparation and Ethio Telecom's readiness for share sales. Prime Minister Abiy
Ahmed reiterated the government's commitment to privatizing ten percent of
Ethio Telecom's shares, thus enabling Ethiopian citizens to partake in
ownership of the national telecommunications company.
Brook Taye reaffirmed ECMA's steadfast support for Ethio
Telecom's partial privatization, emphasizing the authority's pivotal role in
nurturing market development. Additionally, Taye disclosed ECMA's assistance to
other private companies keen on listing in the future capital market, signaling
a broader effort to diversify investment opportunities in Ethiopia.
Moreover, ECMA has embarked on licensing capital market
service providers, attracting interest from both local and international
entities. Taye revealed that a global investment advisory firm recently
submitted an application to operate on the future Ethiopian Securities Exchange
(ESX), underscoring heightened international interest in Ethiopia's capital
market.
In furtherance of its objectives, ECMA has taken proactive
measures to ensure market integrity and enhance technological capabilities
through strategic partnerships. Notably, two memorandums of understanding
(MoUs) were signed: the Capital Market Integrity Task Force Cooperation and
Coordination Agreement, aimed at collaborating with law enforcement agencies to
combat illicit activities, and a strategic partnership agreement with the
Ethiopian AI Institute, National ID, and the Information Network Security Administration
to bolster technology infrastructure.
These initiatives epitomize ECMA's dedication to fostering a
transparent and resilient capital market environment in Ethiopia, laying the
groundwork for heightened investor confidence and sustainable economic growth.
Source: Capital Ethiopia
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