Ethio Telecom Shareholders Cleared to Begin Trading on Ethiopian Securities Exchange

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Ethio Telecom shareholders can now buy, sell, and transfer shares on the Ethiopian Securities Exchange (ESX) following official clearance to commence trading, marking a historic milestone for Ethiopia’s capital market reforms.

The development, announced on May 26, 2026, allows verified shareholders to actively trade after a lengthy verification process. Approximately 45,000 investors representing 96% of participants have been cleared, with around 10.1 million shares valued at roughly ETB 3 billion (approximately $18.8 million) successfully dematerialised and converted into electronic form.

This listing represents the first major state-owned enterprise to trade on the ESX, which itself is still in its early stages after Ethiopia relaunched its securities exchange following decades of absence. Ethio Telecom’s partial privatisation through a 10% public offering between October 2024 and February 2025 at ETB 300 per share had drawn strong domestic interest.

The journey involved converting Ethio Telecom from a state development enterprise into a share company (S.C.), a complex process that included rigorous shareholder verification using the national Fayda digital ID system. A small portion of applicants (around 3.4%) were not verified, primarily due to missing Fayda IDs or ineligibility as non-Ethiopian nationals, with their funds set to be refunded.

Frehiwot, a senior official involved in the process, described the listing as the culmination of extensive work to prepare the company and its shareholders for public market participation.

The debut of Ethio Telecom on the ESX is expected to inject liquidity and credibility into the exchange, which has so far seen limited activity. As Ethiopia’s dominant telecommunications provider, the company’s performance will serve as a key benchmark for investor confidence in the broader market.

The move forms part of the government’s wider economic liberalisation agenda, which includes opening up key sectors to private and foreign investment. It also signals intent to eventually divest more of the company’s shares, with plans for further listings of other state-owned enterprises in the pipeline.

For ordinary Ethiopians who participated in the IPO, the ability to trade shares provides a new avenue for wealth management and signals growing financial inclusion through capital markets. However, analysts caution that sustained success will depend on improved corporate governance, consistent dividend policies, and broader market depth.

As trading begins, all eyes will be on initial liquidity, share price performance, and whether this landmark listing can catalyse greater participation from both domestic and international investors in Ethiopia’s evolving capital market.