Ethiopia has officially launched the sale of a 10% ownership stake in Ethio Telecom, the country’s leading telecommunications provider, as part of a broader initiative to engage citizens in the telecom sector. Prime Minister Abiy Ahmed announced the commencement of this sale, marking a significant transition for Ethio Telecom, which has evolved from a state-owned development company to a shareholding entity.

The Prime Minister highlighted that the government aims to increase the share available to Ethiopians in the future, building on an earlier decision that allocated 40% of shares to foreign investors, 10% to local citizens, and retained 50% for the government. “The 10% stake given to Ethiopians could grow,” he indicated, reflecting optimism about expanding local ownership.

The shares are being offered at an estimated price of 300 birr each, with a minimum purchase requirement set at 33 shares, totaling approximately 9,990 birr. The government has emphasized that this initiative is part of Ethiopia’s first capital market sale and is designed to enhance public participation in the telecom sector.

Frehiwot Tamiru, CEO of Ethio Telecom, explained that buyers can purchase up to 3,333 shares, amounting to a maximum investment of about 999,900 birr. She also noted that each share purchase will incur taxes and service fees.

The transition to a shareholding company was formalized on June 21, 2024, under the Ethiopian Commercial Code. This change is expected to improve Ethio Telecom’s operational efficiency and expand access to capital while enhancing service quality for customers.

By allowing Ethiopian citizens to own a stake in their largest telecom and digital financial services provider, the government hopes to foster greater engagement and investment in the sector. The move is anticipated to play a crucial role in further developing Ethiopia’s economy and increasing access to essential services.

In this initial round of sales, Ethio Telecom is offering 300 million ordinary shares valued at 100 birr each. Interested buyers must comply with requirements set by the Ethiopian Capital Market Authority as part of the public offering process.

With an estimated capital of 100 billion birr and a net worth of approximately 300 billion birr according to global market evaluations, Ethio Telecom’s transformation into a shareholding company marks a new chapter in Ethiopia’s economic landscape.

The International Federation of Freight Forwarders Associations (FIATA), a global logistics association, has given the Ethiopian Freight Forwarder and Shipping Agents Association (EFFSAA), the industry’s lobbying body, the go-ahead to offer internationally accepted advanced training in the logistics field.

It has been said that having skilled labor on hand will encourage potential investors, especially those from abroad, to make investments in the nation as it is one of the most important components.

The Ethiopian association was founded in the late 1990s and has supported its members and carried out many lobbying operations in addition to conducting multiple capacity development trainings on its operational scope.

According to the association’s most recent announcement, FIATA has given EFFSAA permission to offer Ethiopian students a FIATA advanced diploma program.

The EFFSAA President, Dawit Woubishet, states that his organization and FIATA have reached an agreement to launch the higher training program in the logistics industry, which he claims is “the first for the continent.”

According to industry experts, one of the obstacles to improving the logistics sector, which is essential for economic growth, is the shortage of qualified labor in the field.

The organization has been working on a number of short- and medium-term training programs, some of which have worldwide association recognition, in order to supply the industry with competent labor.

Dawit claims that the new scheme will start this Ethiopian year.

According to him, the government is presently focusing on sector growth, which has made it possible to increase the number of competent workers in the industry.

The private sector was denied the opportunity to dominate the field with qualified expertise until a few decades ago, when local operators were allowed to enter the market.

Prior to this, the industry was one of the rare monopolies of state businesses that supported training for its own employees.

He claimed that the number of universities offering training in the field at the higher education level is relatively new.

He noted that EFFSAA had previously established the 14-module FIATA diploma program and had worked on several short-term training initiatives.

“The upcoming advanced training will be the highest at the FIATA,” he said. All modules will be included in the advanced program.

Maritime and multimodal transport, maritime containerization, air and rail transport, dangerous goods, information and communication, logistics, freight forwarding, and customs are parts of the FIATA module.

“The upcoming advanced diploma training that is recognized by FIATA would be eligible for those who trained on the FIATA diploma or at the leadership position in the sector,” Dawit told Capital.

The president of EFFSAA claims that there is a significant shortage of competent personnel in the logistics industry.

According to him, the association arranges for leaders and players in the corporate sector, as well as those who work in policy-making, to receive similar training with the aim to lead the sector with qualified personnel.

“The FIATA training will increase someone’s capacity and understanding of the logistics sector, enabling them to lead the sector with sufficient knowledge, even if they have been in it for a number of years,” Dawit, who is one of the prominent private sector operators in the country with more than three decades of experience, stated.

He emphasized that one of the most important factors in luring foreign investors to Ethiopia’s market is the availability of competent labor, including certified individuals with globally recognized credentials like FIATA diplomas and advanced diplomas.

“The availability of skilled labor is one of the key questions for those looking to invest in Ethiopia, so we fill the gap,” he stated, adding that in light of the logistics sector’s impending liberalization, adequate and qualified people are necessary; otherwise, potential investors might not be interested in visiting and making investments in the country.

According to him, those who have completed FIATA diploma and advanced diploma programs are eligible to work anywhere in the world since FIATA, the largest organization in the industry, recognizes their training.

FIATA is a membership-based, non-governmental association that represents freight forwarders in about 150 territories.

Approximately 6,000 individual members and 113 association members make up FIATA’s membership, which collectively represents the 40,000 freight forwarding and logistics companies that operate globally.

At their meeting in Addis Ababa, the lobby organizations representing Djibouti and Ethiopia in logistics discussed how to best utilize their collaboration to boost trade between the two countries.

For the majority of its foreign trade, Ethiopia, the most populous country without a maritime exit, depends on Djibouti.

According to Anteneh Alemu, CEO of Pave Logistics and Trading PLC and Vice President of the Ethiopian Freight Forwarder and Shipping Agents Association (EFFSAA), improving ties and collaboration between EFFSAA and the Association of Djiboutian Freight Forwarders (ATD) is essential for the effectiveness of the industry.

The Ethiopian counterpart has addressed a number of topics with the ATD team, which included President Robleh Mohamed Barreh and Secretary General Robleh Abdillahi Abdi, during their meeting on Thursday, October 17.

The majority of Ethiopian freight forwarders collaborate with their ATD-member counterparts in Djibouti while handling Ethiopian cargoes.

In the past, member logistics companies or organizations operated independently, but today, the Vice President of EFFSAA said, “The two sides have agreed to sign a memorandum of understanding (MoU) and work jointly to enhance relations and establish a formal communication platform between the two sides.”

Anteneh told Capital, “This kind of cooperation shall boost the cooperative spirit and create transparency and trust as a business.”

“We used to act independently when there were changes, like new procedures being implemented or tariffs changed, but now we will work together and share information on the ongoing activity between the two countries,” he continued.

He emphasized that ATD will receive support from the Ethiopian organization that was established in 1998.

They are doing there, in part, what EFFSAA is doing, which is to say, “We will share our experience on capacity building and training programs.”

Bringing together about 89 Djiboutian freight forwarders, ATD unites freight forwarders that work in the nation’s transportation and logistics sectors.

EFFSAA was founded by a group of logistics experts with the goal of giving the industry a greater voice and power.

Ethiopian freight forwarders frequently work with Djiboutian partners to ensure smooth cargo transportation.

The MoU is scheduled to be inked between the two parties in the near future.

On October 16, 2024, Ambassador Hu delivered a compelling address at the China-Africa Union International Symposium on Perennial Rice held in Addis Ababa. The event, organized by the Chinese Mission to the African Union and the African Union Commission, brought together distinguished guests and stakeholders to discuss agricultural cooperation between China and Africa.

In his opening remarks, Ambassador Hu expressed gratitude to Commissioner Mrs. Sacko and the Department of Agriculture and Rural Affairs for their support in organizing the symposium. He emphasized that agricultural cooperation is a cornerstone of China-Africa relations, highlighting China’s commitment to sharing its agricultural expertise and technologies to combat poverty and enhance food security across the continent.

Ambassador Hu spotlighted the groundbreaking technology of Perennial Rice, developed by Chinese agronomists. This innovative crop is characterized by its simplicity, high yield, and low carbon footprint, earning recognition as an “International Agricultural Innovation Technology” by the FAO in 2018. He noted that initial trials in countries such as Uganda, Madagascar, and Nigeria have shown promising results, with yields significantly surpassing local rice production.

The ambassador also outlined China’s plans for further collaboration in promoting Perennial Rice in Africa. Key initiatives include establishing a “China-Africa Perennial Rice Technology Cooperation Center” in Uganda and conducting training courses for African agricultural officials. These efforts aim to strengthen capacity building and ensure effective technology transfer.

Ambassador Hu concluded by reiterating China’s commitment to enhancing agricultural development in Africa and fostering a sustainable future for food security. The symposium underscored the importance of continued cooperation between China and the African Union in addressing pressing agricultural challenges on the continent.