Ethiopia’s Securities Exchange is set to commence official trading operations next week, marking a transformative milestone for the country’s financial sector and economic development.
Following successful pilot transactions conducted two weeks ago, the ESX is now prepared for full operational launch, opening new investment avenues and economic growth opportunities. The exchange has garnered significant attention from both domestic and international investors since its establishment in October 2023.
The capital raising campaign exceeded expectations by securing 1.5 billion birr (approximately $26.6 million), surpassing initial targets by 631 percent. This capital infusion came from 48 institutional investors across financial and non-financial sectors, with coordinated efforts spanning Addis Ababa, Nairobi, and London.
The ESX operates under an innovative public-private partnership model, with the Ethiopian government holding 25 percent stake through Ethiopian Investment Holdings, while private sector controls the remaining 75 percent. Key foreign investors include FSD Africa, Trade and Development Bank Group, and Nigeria’s NGX Group.
Domestic participation encompasses 16 private commercial banks, 12 private insurance companies, and 17 other institutional investors. State-owned enterprises including Ethio Telecom and Commercial Bank of Ethiopia hold shares collectively accounting for the government’s stake.
Several companies have registered or are preparing to list on the ESX. Gadaa Bank S.C. recently confirmed official registration, becoming the second bank to join after Wegagen Capital Investment Bank S.C., which obtained its first business membership certificate earlier this year.
The exchange’s ambitious roadmap aims to include up to 50 companies within five years and more than 90 businesses over the first operational decade. This expansion is expected to significantly deepen Ethiopia’s capital market, providing businesses with new capital-raising opportunities and investors with diversified options.
The ESX launch represents a cornerstone of Ethiopia’s broader economic reform agenda, designed to modernize the financial sector, enhance transparency, and improve access to long-term financing for public and private enterprises. The exchange is expected to catalyze private sector growth and stimulate investment-led development.
Since its official inauguration in January 2025, the ESX has progressed rapidly from concept to operational readiness. The exchange features state-of-the-art electronic trading platforms integrated with modern central securities depositories, enabling efficient issuance, trading, clearing, and settlement of diverse financial instruments.
The ESX addresses longstanding challenges in Ethiopia’s financial system, including the absence of interbank trading platforms, which previously limited liquidity management and contributed to high borrowing costs. Since piloting its interbank trading platform in late 2024, the ESX has facilitated trades exceeding 135 billion birr (approximately $1.1 billion).
Market experts anticipate the ESX will unlock potential for small and medium-sized enterprises, which form the backbone of Ethiopia’s economic growth, by providing access to capital previously unavailable through traditional banking channels.
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