In a groundbreaking move for Ethiopia’s economic and financial landscape, Prime Minister Abiy Ahmed officially launched the Ethiopian Securities Exchange (ESX) on January 10, 2025, marking a transformative milestone in the nation’s journey toward economic modernization. This historic launch took place at the Ethiopian Science Museum, symbolizing Ethiopia’s embrace of innovation and progress in its capital markets. The Ethiopian Securities Exchange is poised to revolutionize the nation’s financial sector by creating a transparent, efficient, and accessible marketplace for securities trading. By bridging capital with opportunity, the ESX will unlock new avenues for businesses, investors, and stakeholders, driving economic development and fostering financial inclusion across Ethiopia.

Ethiopia’s Wide Ranging Economic Reform and the Establishment of ESX

The exchange is a cornerstone of the Ethiopian Government’s economic reform agenda under the Home-Grown Economic Reform II (HGER II) initiative, spearheaded by the Prime Minister and aimed at enhancing financial inclusivity, mobilizing capital, and fostering investment-led growth across the country. ESX is expected to play a key role in supporting the expanding Ethiopian economy by promoting access to long term local currency financing for both the public (Government) and private sector.

In doing so ESX will play its own role in improving the intermediation and mobilization of savings for investment for capital intensive investments, improve corporate governance and transparency, bring about an orderly market for listing and trading and settlement of securities thereby protecting investors.

ESX: A pioneering partnership between the private and public sector

ESX was established in October 2023 through a pioneering public-private partnership with the Government of Ethiopia through the Ethiopian Investment Holdings (EIH), its strategic investment arm, as the founding shareholder, with a mandated total public shareholding of up to 25%, with the remaining 75% to be private shareholding.

At present, the list of investors includes foreign strategic investors, including FSD Africa, the Trade and Development Bank Group (TDB), Nigerian Exchange Group (NGX), along with 16 domestic private commercial banks, 12 private insurance companies, as well as 17 other private domestic investors. Public sector interests, jointly representing 25% of shareholding, include EIH and its subsidiaries such as Ethiotelecom and the Commercial Bank of Ethiopia, among others.

ESX: A Modern Multifaceted Market Infrastructure

The design and market structure of ESX is testament to its design as a multifaceted market infrastructure. ESX offers a diverse range of financial products across its three market segments: Equity Market, Fixed Income Market, Money Market and Alternative Market. Each of these markets are designed to serve both large and small businesses, government and financial institutions to raise short, medium and long-term capital. ESX’s pilot money market platform has already transacted more than 100 billion ETB in the first few weeks of operations showing a promising start in terms of creating value to the Ethiopian financial sector.

Over the past year, the Ethiopian Securities Exchange (ESX) has been steadfast in its mission to establish a strong and forward-looking financial market infrastructure. ESX has meticulously crafted an organizational structure rooted in global best practices, coupled with a governance framework that ensures transparency, accountability, and investor confidence. A cornerstone of this preparation has been the deployment of a cutting-edge trading platform, and a state-of-the-art broker back-office system and mobile trading system to enable efficient trade execution and settlement as well as empower investors with secure and user-friendly access to the market from anywhere. These comprehensive readiness activities underscore ESX’s commitment to fostering a modern, inclusive, and vibrant capital market for Ethiopia.

Dr. Tilahun E. Kassahun, CEO of ESX, commented: “The Ethiopian Securities Exchange is more than a market; it is a catalyst for change. Today marks the beginning of a new era for Ethiopia, where capital can flow freely to unlock opportunities, empower businesses, and transform lives. Together, we are building a robust financial foundation for future generations.”

Join the Movement

The Ethiopian Securities Exchange invites all stakeholders, partners, and the public to celebrate this historic launch. Be part of Ethiopia’s financial revolution as we connect capital to opportunity and pave the way for a prosperous and inclusive future.