Ethiopia's Stock Exchange Launches, Boosting Economy
The ESX's launch is part of a broader effort to develop Ethiopia's financial sector, with the government aiming to promote private sector growth and stimulate investment-led development. The exchange is expected to provide new opportunities for companies to raise capital and for investors to participate in the country's growing economy.
The Ethiopian Securities Exchange (ESX) is set to begin official trading next week, marking a significant milestone for the country's financial sector, with a capital raising campaign securing 1.5 billion birr and garnering attention from local and international investors.
The ESX operates under a public-private partnership model, with the Ethiopian government holding a 25% stake and the private sector controlling 75%. Key foreign investors include FSD Africa, the Trade and Development Bank Group, and Nigeria's NGX Group. Several companies have registered or are preparing to list on the ESX, with an ambitious roadmap aiming to include up to 50 companies within the next five years.
The launch of the ESX is expected to catalyze private sector growth, stimulate investment-led development, and promote financial inclusion across the country. Ethiopia's financial landscape is rapidly evolving, with major developments in banking, capital markets, trade, telecom, and policy. The National Bank of Ethiopia has lifted the mandatory long-term Treasury bond purchase for banks amid eased inflation, and interbank trades have totaled ETB 9.68 billion during June 30-July 4.
Other significant developments in the Ethiopian financial sector include the African Development Bank's approval of a $50 million trade finance guarantee for Awash Bank, and the growth of several banks, including Zemen Bank, Awash Bank, and Siinqee Bank. The Ethiopian government has also signed a $1 billion deal with the World Bank for economic reform and secured a $3.5 billion debt relief deal under the G20 framework.
The launch of the ESX is a major step forward for Ethiopia's economic development, and is expected to have a positive impact on the country's financial sector and overall economy. With the support of local and international investors, the ESX is poised to play a key role in promoting economic growth and development in Ethiopia.