ADDIS ABABA — The Ethiopian Securities Exchange (ESX) is scheduled to begin operations in October 2024, marking a significant milestone in Ethiopia’s financial sector development, announced ESX Director-General Tilahun Kassahun.
According to Ethiopian News Agency, the preparations for the launch, including financial collections and licensing efforts with the Capital Market Authority, are well underway. The ESX, initially projected to raise 500 million Birr in capital, has successfully garnered over 1.26 billion Birr to date. “Awareness creation activities are being carried out for private financial institutions and non-financial institutions that have the desire to participate in the capital market,” Tilahun noted, highlighting the efforts to engage potential market participants.
The director-general also emphasized that the necessary human resource and technological inputs are in place to ensure a smooth start to the exchange’s operations. He commended the Ethiopian government for its support in establishing a conducive environment for the ESX by setting up the Ethiopian Capital Market Authority, issuing relevant proclamations, and fulfilling other essential prerequisites.
Tilahun underscored the potential impact of the ESX on Ethiopia’s economy, noting that it will serve as a vital platform for job creation, the execution of large-scale projects, and the expansion of the agricultural sector, thereby accelerating overall economic growth. “The ESX will have a great role in creating job opportunities, carrying out huge projects, expanding agriculture and accelerating economic growth,” he said.
As Ethiopia’s first securities exchange, the ESX aims to play a crucial role in the development and expansion of the national capital market, facilitating access to capital and supporting efficient capital allocation in line with Ethiopia’s economic ambitions.