Ethio Telecom lists on Ethiopian Exchange in first IPO milestone

Ethio Telecom, the state-owned telecommunications provider, has officially listed on the Ethiopian Securities Exchange, completing Ethiopia’s first initial public offering and opening a new chapter for the country’s capital markets. 

The telecom operator raised 3.2 billion birr ($19.8 million) from 47,377 investors during its share sale earlier this year. While the offer fell short of its 30 billion birr target, the IPO marked a historic step for a country that is gradually opening key sectors of its economy to private investment. 

The listing comes as Ethiopia pushes ahead with broader economic reforms aimed at attracting local and foreign capital. The government had limited the first round of the IPO to Ethiopian citizens, a move the company later acknowledged reduced participation levels. Ethio Telecom now plans a second phase that could include international investors.

Following regulatory review, the Capital Market Authority granted final approval for the listing, clearing the way for secondary trading on the ESX. The Ethiopian Securities Exchange Ethiopian Securities Exchange is newly operational after decades without a formal exchange.

Ethiopia Telecom market leader

Ethio Telecom remains the dominant player in Ethiopia’s telecom industry, controlling about 94.5 percent of the market. The company serves 87.1 million subscribers and generated 148 billion birr ($918.4 million) in revenue in 2025. 

The operator runs GSM, 3G, 4G LTE and 5G services across the country and has expanded digital payments through its telebirr mobile money platform, which has become a major part of Ethiopia’s growing digital economy. 

The Ethiopian government, through Ethiopian Investment Holdings, will retain a controlling stake in the telecom company even as officials weigh additional share sales in the future. 

The listing is also a milestone for the Ethiopian Securities Exchange, which resumed operations after more than five decades without a formal stock market.

Frehiwot Tamru leads expansion 

Frehiwot Tamru, who was appointed chief executive officer in 2018 by Ethiopian Prime Minister Abiy Ahmed, has overseen a period of rapid expansion at the company. 

Under her leadership, Ethio Telecom increased its subscriber base and revenue while cutting telecom tariffs by as much as 40 percent to 50 percent. Her tenure has also coincided with Ethiopia’s gradual opening of its telecom sector to competition and private investment.

She has said the listing process required extended verification of shareholder records before final approval. Shares are expected to begin secondary market trading under standard ESX rules, including lock-in provisions until the listing process is fully completed.

The listing of Ethio Telecom signals the beginning of Ethiopia’s broader effort to build a functioning equity market and attract long-term investment capital.