IMG_20250110_190647_546

Africa’s Next Stock Markets Find New Ground as Ethiopia Rings the Bell with ESX Launch

Ethiopia officially launched its Securities Exchange (ESX) today. The much-anticipated event was officiated by Prime Minister Abiy Ahmed (PhD) at the Science Museum in Addis Abeba, marking a milestone for the nation’s economic trajectory.With more than 50 companies expected to list their shares on the exchange over the next five years, the launch of the Ethiopian Securities Exchange (ESX) has positioned Ethiopia as a key player in Africa’s evolving financial landscape. This development is aligned with the country’s broader strategy to modernize its economy, attract foreign investment, and provide a platform for Ethiopian companies to access capital markets.

Ethiopia, with its fast-growing economy and young, dynamic population, has long been seen as an emerging market with vast potential. The establishment of a national securities exchange provides a much-needed avenue for businesses and investors to engage in capital markets, offering an alternative to traditional financing methods.

The ESX launch comes after years of preparatory work by the Ethiopian Capital Market Authority (ECMA), which has been working to establish a regulated and structured financial environment to support the exchange. The introduction of the ESX is expected to diversify Ethiopia’s financial sector, which has traditionally been dominated by banks and government-backed institutions.

Experts argue that the exchange will provide local companies with access to long-term financing, enable them to expand operations, and foster transparency in the market. Furthermore, it will help attract international investors seeking exposure to one of Africa’s fastest-growing economies.

The ESX is also expected to reduce the country’s reliance on external financing by offering a platform for Ethiopians to invest in local businesses. Over the next five years, it is anticipated that about 50 companies will list on the exchange, ranging from small and medium-sized enterprises (SMEs) to large, publicly traded corporations.

This move to establish the ESX is part of Ethiopia’s broader efforts to integrate itself into global financial markets. It follows a series of economic reforms, including the liberalization of sectors such as telecommunications, banking, and logistics, which are all aimed at modernizing the country’s financial infrastructure and attracting foreign capital.

As Prime Minister Abiy Ahmed stated on his X (formerly Twitter) , “Invest in Ethiopia—a fast-growing economy with immense potential and a dynamic trajectory toward prosperity.” The ESX’s debut offers an exciting glimpse into Ethiopia’s future as a leading force in Africa’s financial and investment sectors.

Author

Leave a Reply

Your email address will not be published. Required fields are marked *



Ethiopian Business Review | EBR is a first-class and high-quality monthly business magazine offering enlightenment to readers and a platform for partners.



2Q69+2MM, Jomo Kenyatta St, Addis Ababa

Tsehay Messay Building

Contact Us

+251 961 41 41 41

Author

Addis Maleda
x