Ethiopia’s much-anticipated Securities Exchange (ESX) will officially commence trading next week. Following successful pilot transactions, the exchange is now fully operational and poised to transform investment opportunities and economic growth.
Since its establishment in October 2023, the ESX has drawn strong interest from local and international investors. Its capital raising campaign in November 2023 secured Birr 1.5 billion (about USD 26.6 million), surpassing targets by 631%. Operated as a public-private partnership, the government holds 25% through Ethiopian Investment Holdings, while private investors, including FSD Africa, TDB Group, Nigeria’s NGX Group, and several domestic banks and insurers, own the rest.
The exchange has already attracted members like Gadaa Bank S.C. and Wegagen Capital Investment Bank S.C., and plans to list up to 50 companies within five years. Equipped with a modern electronic trading platform and central securities depository, the ESX will support equities, bonds, and Sharia-compliant securities.
Market experts hail the ESX as a catalyst for economic reform, improved liquidity, and new funding channels for SMEs, aiming to foster transparency and long-term investment-led growth across Ethiopia.
Source: Capital Newspaper