FORTUNE+ VIDEO SPONSORED CONTENTS ADVERTORIALS FORTUNE AUDIO Fortune Careers New TRADE AFRICA New

Fortune Logo

Securities Exchange Set to Launch in January

Dec 13 , 2024

The Ethiopian Securities Exchange (ESX) is set to launch its first trading market in mid-January, 2025, promising to reshape the country’s financial ecosystem. Located on the 18th Floor of the Nile Building in Addis Abeba’s financial district, near Nib International Bank, on Abebe Aregay (Ras) St., the new marketplace has cleared a key regulatory requirement after the Ethiopian Capital Market Authority (ECMA) last week issued operational licenses covering both conventional securities exchange trading and over-the-counter activity.

Officials say the opening will advance the nascent capital markets beyond interbank operations, already active for a month, toward the trading of government treasury bills and corporate bonds. The most anticipated component, a full-fledged stock exchange, is expected to follow, allowing companies to become publicly listed. Ethio telecom, currently floating shares through an initial public offering (IPO) in the primary market, plans to begin trading on the secondary market in a few months, according to Chief Operations Officer (COO) Michael Habte.

According to Tilahun Kassahun (PhD), the Exchange’s chief executive officer (CEO), preparations required only about a year and included drafting rulebooks, adopting technology, and developing governance frameworks.

"Tilahun also disclosed that ESX is ready to launch broker members back office - a system that manages the administrative and operational tasks of a brokerage firm - as well as an order management system, a tool to track the trend of orders."

Investors have responded with substantial capital for ESX's establishment, well above the initial requirement, securing 1.51 billion Br in subscribed capital and 800 million Br in paid-up capital. The Exchange counts 17 institutional investors, including the federal government, which holds a 25pc stake through the Ethiopian Investment Holdings (EIH), a sovereign fund that manages state-owned enterprises. Firms under its supervision chipped in 275 million Br, while international backers such as FSD Africa, the Trade & Development Bank Group, and the Nigerian Exchange Group also took part in the making of the capital market.

Put your comments here

N.B: A submit button will appear once you fill out all the required fields.



Related Posts

Share This Post
Linkedin
Google+


Most read

Latest News

Editor's pick

Commentaries

Ditching Carbon Pricing Reckless Bet with the Planet

In 2009, US President Barack Obama appointed Harvard Law School Professor Cass Sunste...

Africa's Debt Is an Opportunity

Almost every debate about African public finance centres on “Africa's debt burden” as its primary topic. The numbers are stark: the medi...

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...

Editorial

Soaring Taxes Fail to Plug Holes as Audit Reveals Enduring Waste

Jun 28 , 2025

Meseret Damtie, the assertive auditor general, has never been shy about naming names...

Expanding Federal Budget Tests Limits of Fiscal Discipline

Jun 21 , 2025

A well-worn adage says, “Budget is not destiny, but it is direction.” Examining t...

Desire to March to the Sea Should Spill Reason on the Way

Jun 14 , 2025

Yet again, the Horn of Africa is bracing for trouble. A region already frayed by wars...

Where the Roof Overhead Comes with a Ceiling on Hope

Jun 7 , 2025

Few promises shine brighter in Addis Abeba than the pledge of a roof for every family...

Gallery

Parliament Approves New Cabinet Members

Oct 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

Jan 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

Sep 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

Dec 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

Apr 26 , 2019

Sunday With Eden

Real Respect Shows Up First

A couple of weeks ago, I found myself at a social gathering where strangers and old acquaintances mix in a haze of small talk and light laug...

Absence of Agile Discipline

In Ethiopia, across both public and private sectors, a quiet saboteur undermines productivity: the meeting. Too often, gatherings stretch en...

Life Matters

The Quiet Roar Beneath the Calm

There is often a sense of awe when encountering someone who appears to have everything under control. Impeccably dressed, composed, and seem...

The Weight of the World

The film Straw did not just break a heart, it reached into something deeper, unsettling a primal fear that resides in every parent. As a mot...