Addis Ababa, Ethiopia – May 16, 2025

The Ethiopian Securities Exchange (ESX) and the International Finance Corporation (IFC) have entered into a strategic partnership to launch the Ethiopia Money Market Capacity Building Project. The initiative marks a major step toward developing a modern, well-functioning money market in Ethiopia and strengthening the institutional foundations of the country’s financial sector.

The project is designed to build capacity across the capital market ecosystem, with a strong focus on developing the interbank money market—an essential component of any robust financial system. As part of the initiative, the project will support the establishment of a national dealer’s association to represent participants in Ethiopia’s local currency and foreign exchange interbank markets.

The partnership aligns with ESX’s broader goal of developing a centralized, functional interbank market through its licensed trading platform. A well-structured money market is critical to enabling market-based pricing of key short-term financial instruments such as Treasury bills, corporate bonds, and commercial papers. These instruments, in turn, are fundamental to fostering liquidity, transparency, and investor confidence in the capital market.

Dr. Tilahun Esmael Kassahun, CEO of ESX. Stated that “Capacity building and product development are the next frontier for Ethiopia’s capital market. Through this collaboration with IFC, ESX aim to build the institutional capacity and market infrastructure necessary to support the development of Ethiopia’s broader debt and equity markets.

As the central market organizer and authorized platform provider for interbank trading, ESX will play a facilitative role in advancing the project’s capacity-building efforts and supporting the formation of the dealer association. The initiative represents a foundational step toward achieving long-term financial market stability and broad-based economic development in Ethiopia.