ShareEthiopia has excluded diaspora citizens and foreign nationals from participating in its first-ever public offering (IPO) of Ethio Telecom, the state-owned telecom company that holds 95% of the market share. However, the exclusion of diaspora and foreign investors from the IPO could potentially hinder Ethiopia’s efforts to develop open capital markets, a key element of Prime Minister Abiy Ahmed’s plan to liberalize the financial sector and modernize the economy. It is not available to individuals or entities in other jurisdictions outside Ethiopia,” Ethio Telecom detailed in its investor prospectus. A capital markets expert shared with TechCabal that Ethiopia might restrict the participation of foreign investors in the telecom sector, which the country still views as critical and strategic, despite opening up for foreign capital. This development was intended to liberalize the telecom sector and enhance service access in remote areas.

Source: Ethiopian News October 22, 2024 11:15 UTC