This journey began in 2021 with the appointment of Meles Minale, a macroeconomic advisor at the National Bank of Ethiopia, to spearhead a team of 14 experts in laying the foundation for Ethiopia’s first full-fledged capital market. The efforts of this team resulted in the establishment of the Ethiopian Capital Market Authority (ECMA), under the astute leadership of Brook Taye (PhD), a young economist with extensive experience from the Ministry of Finance and the private sector. The Authority is entrusted with critical responsibilities, including the development of a regulatory framework, the creation of a long-term capital market development roadmap, and the review of institutional investor regulations, macro-financial policies, and tax policies.

These preparations are essential for the establishment of the Ethiopian Securities Exchange (ESX). With most of the preparatory work now completed, the inauguration of the ESX is scheduled for November 2024, marking a significant milestone in Ethiopia’s economic evolution. Officials emphasize that the ESX is already attracting significant investor attention and pulling in funds. The Ethiopian Investment Holdings (EIH) is set to be one of the largest investors on the ESX. In October 2023, EIH and four of the largest state-owned enterprises (SOEs) under its purview—namely, the Ethiopian Shipping and Logistics Services Enterprise (ESLSE), Berhanena Selam Printing Enterprise, Ethiopian Insurance Corporation (EIC), and Ethio Telecom—announced a combined 25% stake acquisition in the ESX. In addition to securing 275 million birr from four state-owned enterprises (SOEs), the ESX sought to raise an additional 625 million birr from private entities. Several prominent private banks with significant capital holdings have already announced their equity investments in the ESX. For instance, Awash Bank emerged as the leading investor two months ago, acquiring shares valued at 70 million birr. Global Bank also contributed 50 million birr to the ESX’s capitalization efforts. Authorities also highlighted strong investment intentions from companies based in Kenya, Nigeria, and South Africa. Notably, the Nigerian Exchange Group (NGX) publicly announced its acquisition of a stake in the ESX in April 2024, though the specific investment amount remains undisclosed. As of one month ago, the ESX had successfully secured over 95% of its targeted capitalization of one billion birr.

This achievement paves the way for the exchange to officially commence operations. Senior government officials assert that Ethiopia’s progress toward opening its capital market represents a fundamental transformation in its economic landscape. Prime Minister Abiy Ahmed recently remarked that the introduction of a stock market in Ethiopia is “poised to be a game-changer, supporting the country in achieving its growth aspirations and attracting new capital,” further noting that “this marks an exciting chapter for the nation.”