Ethiopian Securities Exchange Makes Historic Debut

Addis Ababa January 10/2025 (ENA) —The Ethiopian Securities Exchange (ESX) is poised to revolutionize the nation's financial sector by creating a transparent, efficient, and accessible marketplace for securities trading.

In a groundbreaking move for Ethiopia's economic and financial landscape, Prime Minister Abiy Ahmed officially launched ESX on Friday, marking a transformative milestone in the nation's journey toward economic modernization.

This historic launch took place at the Ethiopian Science Museum, symbolizing Ethiopia's embrace of innovation and progress in its capital markets. By bridging capital with opportunity, the ESX will unlock new avenues for businesses, investors, and stakeholders, driving economic development and fostering financial inclusion across Ethiopia.

The exchange is a cornerstone of the Ethiopian Government's economic reform agenda under the Home-Grown Economic Reform II (HGER II) initiative, spearheaded by the Prime Minister and aimed at enhancing financial inclusivity, mobilizing capital, and fostering investment-led growth across the country.

ESX is expected to play a key role in supporting the expanding Ethiopian economy by promoting access to long term local currency financing for both the public (Government) and private sector.

In doing so ESX will play its own role in improving the intermediation and mobilization of savings for investment for capital intensive investments, improve corporate governance and transparency; bring about an orderly market for listing and trading and settlement of securities thereby protecting investors.

ESX was established in October 2023 through a pioneering public-private partnership with the Government of Ethiopia through the Ethiopian Investment Holdings (EIH), its strategic investment arm, as the founding shareholder, with a mandated total public shareholding of up to 25 percent, with the remaining 75 percent to be private shareholding.

 

At present, the list of investors includes foreign strategic investors, including FSD Africa, the Trade and Development Bank Group (TDB), Nigerian Exchange Group (NGX), along with 16 domestic private commercial banks, 12 private insurance companies, as well as 17 other private domestic investors.

Public sector interests, jointly representing 25 percent of shareholding, include EIH and its subsidiaries such as Ethiotelecom and the Commercial Bank of Ethiopia, among others.

CEO of ESX, Tilahun E. Kassahun commented that "The Ethiopian Securities Exchange is more than a market; it is a catalyst for change. Today marks the beginning of a new era for Ethiopia, where capital can flow freely to unlock opportunities, empower businesses, and transform lives. Together, we are building a robust financial foundation for future generations."