Shareholders of Ayat Share Company, one of Ethiopia’s leading institutions in the real estate and investment sector, are expressing frustration over a delay in annual dividend payments.
Despite reporting significant profits and announcing dividend distributions following the presentation of its 2025/26 budget year report nearly five months ago, no funds have been deposited into shareholders’ bank accounts as of March 2026, intensifying their discontent.
According to the complainants, the company traditionally distributed dividends within two weeks of holding its General Assembly in November.
However, they contend that this year, payments have been halted “without any sufficient reason.” Shareholders report experiencing various social and economic difficulties due to the delayed payments. The company, however, maintains that the delay is not a result of financial incapacity but rather a technical process linked to the country’s new capital market system and its registration requirements.
Over the past few weeks, numerous shareholders have visited the company’s headquarters and utilized various communication channels to demand their payments.
One anonymous complainant stated: “We bought shares thinking they would help us during difficult times. Now, even though a profit was reported and the General Assembly made a decision, we are left pleading for our payments. No one is giving us clear information on the delay. They say the company is growing, but our quality of life is diminishing daily.”
Another shareholder criticized the company’s silence, noting: “We voted at the General Assembly to take our profits a long time ago. But when we go to the office, we are told to ‘come back tomorrow’ or ‘come back in a week.’ A large institution like this should not lose the trust of the people.”
Responding to these grievances, Seid Yimer, Director of Finance and Investment at Ayat, explained to Capital Newspaper that the delay occurred because the share company is preparing to enter the capital market. According to the director, under the new law, any share company must be registered with the Capital Market Authority to conduct share sales or transfers.
Seid further explained that Ayat Share Company has signed a consultancy agreement with Wegagen Capital Investment Bank to assist with this registration and has been preparing a prospectus document. “This prospectus preparation has taken a long time. However, the final document has now been completed and addressed,” he said.
The company clarified that the primary reason for withholding the payments is the mandatory approval from the Capital Market Authority, which is required to issue receipts for shareholders who wish to capitalize (reinvest) their dividends.
The director recalled that during the Annual General Meeting (AGM), 62% of shareholders voted to reinvest their full profits, 21% chose partial reinvestment, and the remaining 17% opted for a cash payment.
Seid explained that the company had to await the Capital Market Authority’s response to reconcile shareholder interests and issue receipts for reinvested dividends. With the Authority’s recent approval, stating, “You may pay those who wish to withdraw,” the distribution process has officially begun. “In a single day alone, we paid out over 10 million Birr to shareholders; payments are now ongoing,” he stated, encouraging shareholders to collect their dividends.
The company’s recent reports indicate significant growth in paid-up capital. It increased from 2.5 billion Birr in 2015 (approximately 2007/8 E.C.) to 4.2 billion Birr by 2025, and has reportedly risen further to 6.49 billion Birr in 2026. Profit margins have shown similar upward trends; Seid highlighted that annual profits, previously around 800 million Birr, have now neared 2 billion Birr.
Ayat Share Company’s operations extend beyond real estate into various other industries. In hospitality, it owns Addis Ababa’s historic Ras Hotel and the Star Hotels in Lalibela.
Furthermore, the company vertically integrates its construction operations by owning five concrete batching plants, wood and marble factories for producing its own inputs, and some of the country’s largest stone crushing (gravel production) plants.
The director also announced plans to offer an initial 1 billion Birr worth of shares through the capital market, noting that the number of shareholders has grown to approximately 14,000.
He reassured shareholders that despite minor auditing delays, all matters are now finalized, and dividends are actively being distributed.
