What does the launch of the Ethiopian Securities Exchange (ESX) mean?
Ethiopia took an historic step in modernising its financial landscape with the official launch of the Ethiopian Securities Exchange (ESX) in January 2025. This milestone is aimed at supporting capital market development, increasing investment opportunities, and enhancing financial inclusion.
The Africa Resilience Investment Accelerator’s (ARIA) Country Representative for Ethiopia, Surafel Kelemework, shares his views on what this means:
Why is this significant?
Modernising Ethiopia’s financial sector: The ESX provides a transparent and efficient platform for trading equities, bonds, and other financial instruments, aligning with Ethiopia’s broader economic reforms aimed at liberalising the economy and attracting domestic and international investors.
Unlocking market potential: With a population of approximately 130 million, Ethiopia’s economy is poised for significant growth. The ESX will offer businesses new avenues to raise capital and investors greater access to the Ethiopian market.
Boosting investor confidence and market transparency: The ESX aims to enhance financial sector efficiency, improve transparency, and provide a viable exit mechanism for investors that can accelerate Ethiopia’s private sector-led economic growth. The government has also liberalised the foreign exchange regime and opened the banking sector to foreign investors.
What’s next?
New investment channels for businesses: The ESX will open long-term funding opportunities for businesses and financial institutions, enabling them to expand and scale operations.
Upcoming listings and privatisation plans: Wegagen Bank has already become the first company to offer equity on the ESX. Additionally, state-owned enterprises such as Ethio Telecom are expected to follow suit. Other banks and insurance companies are also anticipated to be among the first to list on the exchange.
As Ethiopia moves forward with its capital market roadmap, the ESX is set to become a key driver of sustainable investment and financial sector modernisation.