AfDB Awards USD400,000 to ECMA and ESX to Advance Ethiopia’s Capital Market

The African Development Bank has granted 400,000 dollars to help the country’s two key capital market institutions: the Ethiopian Capital Market Authority (ECMA) and the Ethiopian Securities Exchange (ESX). This support is aimed at giving Ethiopia’s young capital market the tools it needs to grow, attract investment, and ultimately become a meaningful player in the regional financial landscape.

The grant will support ECMA in launching a modern public disclosure platform designed to enhance transparency and ensure that investors, issuers, and stakeholders have timely access to market-relevant information. This system is expected to promote informed decision-making, enable fair price discovery, and foster investor confidence. For the ESX, the grant will enable the introduction of innovative financial instruments, including exchange-traded funds (ETFs), sukuks, and green bonds.

Speaking on the development, Hana Tehelku, Director General of ECMA, called the partnership “a critical step in building a vibrant and resilient Ethiopian capital market.” ESX CEO Tilahun Kassahun noted the importance of transitioning from foundational setup to real market impact, while AfDB’s Financial Sector Development Director Ahmed Attout highlighted Ethiopia’s potential to become a regional financial hub.