📢 Talk of the Town: Telecom

Welcome to the latest edition of ፍራንክ Digest!

Your weekly brief on all things Finance and Investing. Quick, enjoyable reads for busy professionals in 5 minutes or less.

What’s coming your way:

• ⚡ BUZZ: Two Markets, One Goal: Ethiopia & Kenya's Stock Exchange Deal

• 📞 Dialing Into Ethio Telecom: Should You Buy the Stock?

• 🗝️ Key Takeaways

Thanks for reading!

BUZZ: Trading Without Borders

Finance

Despite their intense አትሌቲክስ rivalry, Ethiopia and Kenya always had a fondness for each other.

So it comes at no surprise that they have decided it’s time to make things official—stock market official, that is .

This cross-listing agreement could shake things up in the region’s financial world, with companies from both countries being able to list on each other’s stock exchanges.

It could bring more opportunities for investors on both sides of the border and give companies from either country easier access to new capital. Think of it like a cross-border shopping spree, but instead of grabbing coffee and injera, you’re picking up shares of Ethio Telecom or Safaricom!

Here’s a quick breakdown:

• What’s Cross-Listing?
  It’s when companies can sell shares in stock markets outside their home country. Ethiopian companies can sell shares in Kenya, and vice versa. This gives investors in both countries more options for where to put their money.

• Ethiopia’s New Kid on the Block: ESX
  Ethiopia’s brand-new stock market, the Ethiopian Securities Exchange (ESX), is set to launch between mid-November ‘24 and February ‘25. It has already made a splash with plans to list big companies like Ethio Telecom, which just announced the sale of 100 million shares​.

• Kenya’s Been Here Before
  The Nairobi Securities Exchange (NSE) is the older, more seasoned partner in this partnership. They’ve got experience, and they’re offering Ethiopia tips on how to run a financial market smoothly. This partnership includes training, shared regulations, and setting up joint projects to ensure both markets run like a well-oiled machine​. For Kenya, adding Ethiopian companies could boost trading volumes and attract new capital.

• Why Does This Matter?
  More access for investors, more opportunities for companies, and more cash flowing across the border. In short, it could provide both stock exchanges a major lift. Ethiopian companies get to play on a bigger stage, while Kenyan investors get a peek into one of the fastest-growing markets in Africa.

Key Takeaways:

• Cross-listing allows companies from both countries to trade shares across borders.

• The partnership could create a more vibrant regional financial market, helping companies raise capital and giving investors more options.