Ethio Telecom Voids 105,000 Shares Held by Ineligible Foreign Buyers

May 27, 2026

Mintesinot Nigussie

Ethio telecom said it had invalidated 105,000 shares purchased by 248 foreign nationals during its retail share sale, highlighting regulatory limits on foreign participation as Ethiopia’s nascent capital market begins trading activity.

The state-owned telecom operator said the foreign buyers were found ineligible under existing requirements governing the company’s 10 percent public share offer. Their payments will be refunded after verification procedures are completed.

The disclosure came as Ethio telecom announced that most domestic investors who participated in the landmark share sale had now completed ownership verification and digitisation procedures required to trade on the Ethiopian Securities Exchange.

According to the company, 45,366 shareholders, representing 95.8 percent of the 47,377 citizens who bought shares, have finalised the dematerialisation process. The verified shareholders collectively hold 10.1 million shares valued at 3.04 billion birr.

The development moves Ethiopia’s capital market reforms into a new phase, allowing retail investors to buy, sell and transfer shares through licensed brokers and investment banks authorised by the Ethiopian Capital Market Authority.

Ethio telecom had earlier disclosed the sale of 10.7 million ordinary shares after the government opened part of the company to public ownership under its Homegrown Economic Reform programme.

The operator, which recently transitioned into a share company under Ethiopia’s revised commercial framework, said the allotted shares had been approved by regulators and registered with the Central Securities Depository.