Prime Minister Abiy Ahmed (PhD) officially launched the Ethiopian Securities Exchange (ESX) today, marking the establishment of the country’s first-ever stock exchange.
The Prime Minister inaugurated the ESX by ceremonially ringing the bell, a moment he described as transformative for Ethiopia’s financial and economic landscape.
“We have officially rung the bell to launch the Ethiopian Securities Exchange – the first stock exchange for our country. Invest in Ethiopia — a fast-growing economy with immense potential and a dynamic trajectory toward prosperity,” Abiy announced via his social media platforms.
ESX offers a diverse range of financial instruments for trading. Investors can trade equity securities such as shares, fixed-income securities including bonds and treasury bills, money market instruments such as repos and interbank instruments, and exchange-traded Funds (ETFs) and Real Estate Investment Trusts (REITs).
Securities traded on the ESX can originate from public companies, whether listed or unlisted, provided they register their securities with the Ethiopian Capital Market Authority (ECMA) and comply with regulatory requirements. Companies seeking to list on the Main Market or Growth Market must adhere to the guidelines outlined in the ESX Rulebook (Volume C), ensuring transparency and accountability.
Trading on the ESX is exclusively available to licensed Trading Members. These include brokers, dealers, market makers, and dealing member banks, all of whom must obtain authorization from the ECMA. Individual investors cannot trade directly on the platform but can access it through licensed brokers.
To invest in the ESX, individuals must first open a trading account with a licensed securities broker. After depositing funds into the account, investors can place buy or sell orders through their broker, who facilitates the trades on their behalf.
As the nation’s pioneer securities exchange, the ESX aims to strengthen Ethiopia’s capital market infrastructure by facilitating access to capital and ensuring efficient capital allocation.
Source: Fana BC and ESX
