Addis Ababa, Ethiopia – December 7, 2024 – The Ethiopian Capital Market Authority (ECMA) has officially licensed the Ethiopian Securities Exchange S.C. (ESX), marking a historic milestone in Ethiopia’s economic transformation. This move is a key component of the country’s ongoing efforts to modernize its financial systems and support sustainable economic growth.
The ESX, which has received regulatory approval from ECMA, is now the country’s sole platform for securities trading. This licensing marks the establishment of a formal, well-regulated market for businesses to raise capital and for investors to access new opportunities. The launch aligns with Ethiopia’s broader macroeconomic reforms aimed at strengthening the financial infrastructure and enhancing investor confidence.
Hana Tehelku, the Director General of ECMA, hailed the event as a transformative moment. “The licensing of our first securities exchange is a vital step towards creating a vibrant capital market in Ethiopia. It will not only provide businesses with the tools to access sustainable financing but also open new avenues for investors to grow their wealth. As regulators, we are committed to ensuring that the market operates with integrity, transparency, and innovation,” Tehelku stated during the announcement.
The ESX has also been granted an Over-the-Counter (OTC) market license, providing a platform for smaller companies that do not meet the stringent requirements for listing on the main exchange. This inclusive approach is designed to expand access to capital for businesses of all sizes and foster broader participation in Ethiopia’s capital markets.
As part of the licensing process, the public has been advised that all securities and shares offered for trade must now be processed through the licensed exchange. This move is expected to streamline trading activities and promote market integrity.
A New Era for Ethiopia’s Economy
The establishment of the Ethiopian Securities Exchange comes as part of a five-year reform agenda aimed at modernizing Ethiopia’s economic landscape. With a robust regulatory framework in place, the market is poised to become a key player in Ethiopia’s economic development, allowing for better capital mobilization, boosting investor confidence, and creating new investment opportunities.
“The launch of the securities exchange is a significant achievement in our journey to build a modern and effective capital market,” said Ms. Tehelku. “Our commitment to transparency, regulatory compliance, and market innovation will help ensure the long-term success and sustainability of this new platform.”
Looking Ahead
As the ESX begins operations, it is expected to facilitate a wide range of financial activities, from the trading of shares to the development of new financial products. The introduction of this exchange also paves the way for enhanced financial literacy and participation in Ethiopia’s capital markets, providing both local and international investors with the opportunity to engage with the country’s growing economy.
The launch of the ESX is a crucial step in Ethiopia’s broader vision of becoming a regional financial hub, attracting foreign investment, and promoting the development of a dynamic capital market that supports businesses, individuals, and the nation’s long-term growth.
For more information, visit ecma.gov.et.
Contact: Saron Woldegabriel
Director, Communications & Public Relations
Phone: 011-5-57-81-62
Email: swoldegabriel@ecma.gov.et
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