The recently formed board of directors of the Ethiopian Securities Exchange (ESX) has endorsed a key figure vital to kick off the Exchange as the founding chief executive officer (CEO), The Reporter learned.

The appointed CEO, Tilahun Esmael Kassahun (PhD), was one of the chief architects behind the formation of ESX since it has been fermenting at a project office level for the past one and a half year. Working with a team of experts responsible for the crafting of the ESX, he has been leading the project office as a Senior Project Manager.

ESX will be the first securities exchange in Ethiopia, set to transform Ethiopia’s primary bond market to secondary, creating stock market ecosystem for trading of various types of shares and securities.

Its formation follows the implementation of the Capital Market Proclamation, which was ratified in July 2021, and the formation of the Ethiopian Capital Market Authority (ECMA), the apex regulator overseeing the activities of ESX itself and other market players for the protection of investors.

A month ago, the Exchange announced its establishment as a share company after signing the establishment document among its first five shareholders, altogether owning a 25 percent stake.

Ethiopian Investment Holdings (EIH) and four of its state-owned subsidiaries, ethio telecom, Ethiopian Shipping and Logistics Service Enterprise (ESLSE), Ethiopian Insurance Corporation (EIC), and Berhanena Selam Printing Enterprise, are the five corporations pledged to contribute 25 percent of the over 900 million capital it will have.

At the same time, the Board of Directors was also formed for the ESX last month, onboarding prominent names such as Eleni Gebremedhin (PhD) and Zemedeneh Nigatu. The board is chaired by Hilawe Tadesse, former banker and economist who is currently an advisor to the Governor of the National Bank of Ethiopia (NBE).

Along the board of directors, Tilahun’s first task would be mobilizing the rest 75 percent capital from private investors abroad and locally. Local financial institutions, particularly banks, are reportedly interested to invest in the Exchange and become shareholders. Banks are also earmarked as potential firms to be listed once ESX starts registering IPOs.