Ethiopia takes a major step in economic revival with its first IPO of Ethio Telecom, aiming to attract foreign investment and establish a stock exchange.

By Charles Wachira

Ethiopia, a nation in the Horn of Africa, is taking significant steps toward economic revival after a period marked by brutal internal conflict.

 On October 16, 2024 , it achieved a notable milestone with its first-ever initial public offering (IPO) of 10% of Ethio Telecom, the state-owned telecommunications company. 

While the shares are initially available to local retail investors, this move sets the stage for the long-anticipated establishment of a stock exchange, aimed at attracting foreign investment.

 Ethiopia is currently the only one of Africa’s five largest economies without a stock market.

This IPO is the largest on the continent this year, with Ethio Telecom, which serves nearly 80 million customers, aiming to raise $255 million.

 The offering follows a pivotal decision made in August to end decades of state control over the currency, along with initiatives to simplify business operations.

 The Ethiopian government hopes that allowing the birr to trade more freely will unlock over $20 billion in financing, including a $3.4 billion loan from the International Monetary Fund, with the first review of this bailout imminent.

Earlier in April, Ethiopia extended shares in the Ethiopian Securities Exchange to institutional investors, attracting bids from prominent entities like FSD Africa, the Trade and Development Bank, and the Nigerian Exchange Group.

 Additionally, 16 domestic commercial banks, 12 insurance companies, and 17 local investors participated in the bidding process.

These recent developments have sparked renewed interest in Ethiopia’s economy, particularly following a ceasefire agreement signed between the federal government and the Tigray fighters that brought an end to the civil war in late 2022.

 However, previous attempts at economic transformation through privatization have struggled to gain traction, and regional violence remains a concern.

 There are also growing apprehensions among Ethiopia’s landlocked neighbors regarding Prime Minister Abiy Ahmed’s ambitions for direct access to the ocean, alongside tensions surrounding the giant dam built on a tributary of the Nile, which has drawn ire from upstream nations, particularly Egypt and Sudan.

Moreover, Ethiopia is currently in default on its $1 billion eurobond, with creditors hesitant to accept the proposed restructuring terms.

Despite these challenges, the planned stock exchange represents a tangible step forward and could pave the way for Ethiopia’s reintegration into the global economic mainstream.

Keywords:Ethiopia:IPO: Ethio Telecom: Economic revival: Stock exchange

: Nzambi Matee’s Gjenge Makers recycles plastic waste into durable, affordable bricks, addressing Kenya’s housing crisis with sustainable construction materials.

By Charles Wachira

“ As I like saying, you have to be true to your why. Why are you doing whatever you are doing? What is the motivation behind it? For me, I was just tired of being on the sidelines of seeing plastics pollute the environment. And see where we are today. So act when you can and let the chips fall where they may,” says Nzambi Matee.

It was unmistakably her. Donning light blue overalls spotting visibly dark grease, her 5 ft 6 inches frame stood hospitable and somewhat down-to-earth in functional   yellow boots. While a white beaded rosary lazily dropped on her neck, creating an indelible impression of a measured personality, if not spiritual.

And although her attendant mature girl locs gave her a tomboyish demeanor, her elocution underlined a polished elegance that betrayed a girl about town socialization.

Meet Nzambi Matee, 33, the 2020 Young Champion of the Earth winner, the UN’S highest environmental honour, given to individuals, groups and organizations that have had a transformative impact on the environment.

She’s the founder of Gjenge Makers Ltd, a Nairobi based social enterprise that addresses the prevailing issue of waste pollution in Kenya’s capital.

This former alumna of Jomo Kenyatta University of Agriculture and Technology (JKUAT)eponymously named after the country’s founding President who in 1978, , donated two hundred hectares of farmland for the establishment of the college where she studied physics and material science, recycles and up cycles plastics to strong and beautiful construction materials, with bricks standing out.

In a nutshell, Gjenge Makers addresses the duo issues of plastic waste and housing crisis through its plastic brick solution. And going by its “Build Alternatively, Build Affordably” model, it seeks to provide a crucial product that could empower individual communities by giving them the resources needed to rise out of poverty.

“ It’s my personal goal to help build more shelters to combat the housing crisis with our products which we make sure are accessible to essential institutions such as schools,” says Matee.

She adds that the bricks are made from a combination of plastic and sand with the pavers having a melting point higher than 350°C which makes them more durable than their concrete counterparts.

 “ They have numerous advantages when compared to the conventional ones, for example they are 30 % more durable,” says the Mukuru Slums Development Project Manager, Veto Francis, whose organization is a client.

Matee worked as a data analyst and oil-industry engineer, prior to launching her company. In 2017, she quit her job and went ahead to create a small lab in her mother’s backyard home located in the eastern parts of Nairobi, a locale that nurtures a hustling and competitive spirit among denizens, where she tested sand and plastic combinations.

There she initially began manufacturing pavers. 

Her neighbours understandably griped about the noise emanating from the nascent machine she was using but resentment only emboldened her to remain on track. It took a year to develop the right ratios for her paving bricks.

Like all determined entrepreneurs while she was on the throes of beginning her new act of becoming an entrepreneur she shut down her social life and plowed her entire savings into the project.

A UNEP website explained the throes of her entrepreneurship journey by stating that “Through trial and error, she and her team learned that some plastics bind together better than others. Her project was given a boost when Matee won a scholarship to attend a social entrepreneurship-training programme in the United States of America. With her paver samples packed in her luggage, she used the material labs in the University of Colorado Boulder to further test and refine the ratios of sand to plastic.”

 Her time at the U.S based university gave her time to complete two important things: Finalize the machines that make the recycled materials into pavers and also refine the plastic-to-sand ratio pro-type.

Coincidentally, her workplace is located along Nairobi’s Industrial Area, which is synonymous with Kenya’s manufacturing sector, a locale found south east of the city’s Central Business District (CBD).

 The location, verifiably, has a rich history.

Mooted in 1948 by the British administration, the 9.6 Km2 piece of land is a meticulous handiwork displaying the deliberate planning of the colonialists. In fact, on close scrutiny one is able to see derelict railway lines snaking on the newly carpeted tarmacked roads, encapsulating where the 1895 built Uganda-Kenya railway once did roaring business. 

Today, the place still looks bustling with synonymous armies of workers who toil in the modern day factories that have resisted the temptation of relocating to more business friendly locations. But conspicuously missing are smoke spouting factory chimneys associated with fossil oil, an auspicious tell-tell sign, this East Africa state is on track of retiring fuel-oil -fired plants by 2030.

A homogeneous black gate stands in front of the workplace. You cannot see what is happening inside until when the sentry opens.

My goodness, once you are given entrée one discovers a rectangular yard that is one to behold .As paving tiles of generic colours, green, blue, black, you name it – make the place simply a beautiful riot of shades.

“ These are the sorts of bricks that we manufacture here. Right now the company generates between 1,000 and 1,500 bricks daily. They are 35% more durable than traditional bricks, seven times stronger than the usual standard bricks and they are relatively cheaper to purchase,” says Matee.

Inside the building that has a chock a –block feel noise from operating machines overwhelm the place that noticeably has a youthful crop of workers. From what I see I can tell the company has three machines, including an extruder that does the mixing of plastic waste with sand, at very high temperatures and a press that compresses the concoction. 

“Since plastic is fibrous in nature the brick ends up having a stronger compression strength,” says Matee.

“ There are about 80 of us here and you can do the math of the number of people who rely on us for employment. We also contract people to supply us with waste from packaging factories which we get for free, although we pay for the plastic that we get from other recyclers,” says Matee.

Kenya’s unemployment rate currently is 10.4 percent, according to the Kenya National Bureau of Statistics.

Martin Njoroge was jobless despite holding an undergraduate degree from the local Kenyatta University until when he met Matee who offered her a job.

“Here we work in shifts, depending on the orders placed,” says Njoroge.

With some 4 million or years, inhabitants, Kenya’s capital produces around 2,400 tonnes of solid waste daily with only 45% of the waste generated undergoing any sort of recovery or treatment process. Disproportionately most of it ends up in open dumps or is burned.

From her telling, Matee was inspired to launch her business after habitually coming face to face with the scourge of plastic bags along the streets of the tenth most populated city in Africa.

“ I was seeing litter everywhere in Nairobi. It was pervasive. And while I understood that plastic waste was a global problem, I opted to do something practical and useful about the issue instead of complaining,” says Matee.

She set her mindset to singularly focus on one of the three basic needs necessary for a human being to survive including food, shelter and clothing.

“  I settled on shelter. My goal was to look at ways of converting plastic waste to assist in the provision of shelter in the housing space,” she says.

She certainly had her work cut out.

According to the Organisation for Economic Co-operation and Development (OECD), Africa has the world’s fastest urban growth rates and by 2050, its cities will be home to an additional 950 million people.

And it’s estimated that for the next 20 years 40,000 people in Africa will be relocating into its cities every day.

In fact, several recent studies project that by the end of this century, Africa will be the only continent experiencing population growth. With 13 of the world’s 20 biggest urban areas expected to be in Africa — up from just two today — as will more than a third of the world’s population.

And according to Habitat for Humanity, a global nonprofit housing organization, Kenya has an annual housing demand of 250,000 units with an estimated supply of 50,000 units, culminating in a housing deficit of 2 million units, or 80% deficit.

“ Housing affordability is a key challenge in Kenya with many people unable to afford to buy or build their own home. Only 2% of the formally constructed houses target lower-income families. About 6.4 million people, of Kenya’s urban population live in informal settlements. Many families are at high risk of diseases such as malaria, respiratory infections and or parasitic jiggers infestation,” says Habitat.

To date, Gjenge Makers has recycled more than 20 tons of plastic and officially created 112 job opportunities in the community.

“It is odd that we still have issues providing decent shelter which is a basic human need, yet plastic is a material that is misused and misunderstood for it has enormous potential,” says Matee.

So how did the thinking of an idea end up actually doing something about the thinking itself?

“We started Gjenge Makers in 2016, with a goal of reducing waste pollution in our community. We began by organizing cleanups in our community where we would sort the plastic and then resale it to recycling companies. This mode however was not creating the impact we anticipated because the rate of waste pollution was extraordinarily and exceeded what companies were buying,” says Matee.

“ After a series of research, we bumped into something fresh that involved the creating concrete using polymer. We broke down the waste plastic (HDPE & PET) at high temperature and pressure points, combined the aggregates with sand, leading us to produce our prototype and first minimum viable product (MVP) in 2017,” says Matee.

Right now, the company generates between 1,000 and 1,500 bricks per day, and Matee hopes to expand across Africa.

“ As I like saying, you have to be true to your why. Why are you doing whatever you are doing? What is the motivation behind it? For me, I was just tired of being on the sidelines of seeing plastics pollute the environment. And see where we are today. So act when you can and let the chips fall where they may,” says Matee.

Keywords:Plastic waste recycling:Sustainable construction materials:Housing affordability in Kenya:Gjenge Makers Ltd:Nzambi Matee entrepreneurship journey

:Safaricom expands M-PESA Global to Ethiopia, enabling seamless cross-border mobile money transactions between Kenya and Ethiopia. This move promotes financial inclusion, fosters economic growth, and facilitates regional trade by offering convenient and efficient fund transfers. Safaricom aims to boost mobile money penetration in Ethiopia, empowering businesses and individuals while supporting Ethiopia’s development goals. With its strong digital expertise, Safaricom continues to drive innovation in East Africa’s financial landscape.

By Charles Wachira
Safaricom, Kenya’s leading telecommunications provider, has launched its M-PESA Global service in Ethiopia, marking a significant step towards enhancing cross-border financial transactions between the two East African nations.

 This move is expected to foster economic growth, facilitate trade, and improve financial inclusion across the region.

M-PESA Global allows customers to make mobile money transactions seamlessly from Kenya to Ethiopia, offering a convenient and efficient way to transfer funds across borders.

 This expansion is part of Safaricom’s broader strategy to increase mobile money use and penetration in Ethiopia, leveraging its expertise in digital financial services.

Esther Waititu, Safaricom’s Chief Financial Services Officer, emphasized the strategic importance of this collaboration, stating, “This partnership underscores our commitment to delivering innovative financial solutions that meet the dynamic needs of our customers. By enhancing access to cross-border transfers, we are empowering individuals and businesses across the region.”

Benefits for Ethiopia:

The introduction of M-PESA Global in Ethiopia is expected to have several positive impacts:

1. Enhanced Financial Inclusion: It will enable more Ethiopians to access formal financial services, promoting financial inclusion and reducing reliance on cash transactions.
2. Economic Growth: Facilitating easier and more affordable cross-border transactions will stimulate economic activity, benefiting local businesses and contributing to overall economic growth.
3. Trade Facilitation: Simplifying cross-border payments will facilitate trade between Kenya and Ethiopia, supporting importers, exporters, and small businesses engaged in regional commerce.

Opportunities for Individuals and Businesses:

For individuals, the availability of M-PESA Global means easier remittances and financial support from family members abroad. Businesses can leverage the service for payments, improving efficiency and reducing transaction costs associated with cross-border trade.

Safaricom’s expansion into Ethiopia with M-PESA Global reflects a strategic alignment with Ethiopia’s economic development goals and underscores the company’s commitment to driving digital transformation across the region.

About Safaricom:

Safaricom PLC is Kenya’s leading telecommunications company and pioneer in mobile money services through its widely recognized M-PESA platform. With over 50 million customers and a robust network infrastructure, Safaricom continues to innovate and expand its services to meet the evolving needs of consumers and businesses in East Africa.

This expansion into Ethiopia represents a significant milestone in Safaricom’s regional strategy and reinforces its position as a key player in driving digital and financial inclusion initiatives across East Africa

Keywords:M-PESA Global Ethiopia:Safaricom expansion:Cross-border transactions:Financial inclusion:Mobile money East Africa