Ethio Telecom opens secondary market trading as share company transition drives capital market development

By:  Robert Kwaku Annor

Ethio Telecom has officially announced the commencement of secondary market trading for its shareholders, marking a major milestone in the company’s transition into a publicly traded share company and the development of Ethiopia’s capital market.

The announcement was made by Ethio telecom Chief Executive Officer Frehiwot Tamru, who confirmed that the company has completed the required legal and regulatory procedures to enable shareholders to buy, sell, and transfer shares on the Ethiopian Securities Exchange (ESX).

The development follows the company’s conversion into a share company, a process described by leadership as a historic step toward broadening inclusive wealth creation, strengthening domestic capital markets, and supporting national economic growth through wider citizen participation in ownership structures.

According to the company, extensive verification and registration exercises conducted over recent months confirmed that 45,366 shareholders, representing approximately 95.8 percent of the 47,377 initial subscribers, have successfully completed registration. This makes 10.1 million shares, valued at 3.04 billion Ethiopian birr, eligible for trading on the secondary market.

Ethio telecom noted that a remaining 1,646 shareholders are yet to complete their registration details and have been urged to finalise their information to ensure full compliance. The company also indicated that 248 foreign nationals identified as ineligible will receive refunds in line with established procedures.

The launch of secondary market trading was marked by a ceremonial “bell-ringing” event attended by key stakeholders in Ethiopia’s capital market ecosystem, during which the first official transaction was executed. The event also featured the formal presentation of the company’s registration certificate to CEO Frehiwot Tamru by the Chief Executive Officer of the Ethiopian Securities Exchange, Dr Tilahun Ismael.

Shareholders have been instructed to access trading services through licensed brokers or investment banks authorised by the Ethiopian Capital Market Authority, where dedicated trading accounts will be required for transactions.

The company further stated that dividend distribution for shareholders will be determined and announced at the Annual General Meeting following completion of the financial audit process. It added that ownership rights for verified shareholders are recognised and protected from the start of the current financial year.

Ethio telecom said the development represents a significant step in strengthening citizen participation in the national capital market and advancing the country’s broader economic transformation agenda.