Shares in Ethio Telecom surged approximately 100% in recent trading as the state-owned telecommunications operator declared a dividend of 9.67 billion birr for the financial year ending June 2024.
The payout, representing a 50.9% distribution ratio, appears to have significantly dampened selling pressure, with investors holding positions in anticipation of the cash return.
The dividend announcement aligns with broader state-backed transition rules targeting a 70% payout structure for state enterprises, facilitated through the Ethiopian Investment Authority.
The dividend announcement aligns with broader state-backed transition rules targeting a 70% payout structure for state enterprises, facilitated through the Ethiopian Investment Authority.
This policy shift aims to improve returns for shareholders and enhance the attractiveness of state-owned assets in the domestic market.
The sharp price appreciation underscores the sensitivity of Ethiopian equities to corporate actions and state policy signals.
With the government actively restructuring the financial landscape of its state-owned enterprises, market participants are closely monitoring payout ratios as a key indicator of corporate governance reforms.