Capital Markets Set for Lift with Real Estate Funds, Commercial Paper

Jul 6 , 2025

Ethiopia’s financial sector is on the brink of a transformative shift as the Ethiopian Securities Exchange (ESX), with FSD Africa and FSD Ethiopia, prepares to launch Real Estate Investment Trusts/Funds (REIT/Fs) and a Commercial Paper (CP) market. This plans to deepen capital markets and open investment opportunities beyond the traditionally informal real estate sector. REIT/Fs, proven in markets like South Africa, Nigeria, and Kenya, will allow ordinary Ethiopians to invest in income-generating properties and earn regular dividends helping to attract foreign capital for infrastructure needs. Meanwhile, the ESX is setting up a commercial paper market, giving businesses a faster, cheaper alternative to bank loans for short-term needs, while offering investors attractive yields and liquidity. Nigeria’s recent CP boom shows its potential. Challenges remain, including low awareness and regulatory gaps, but these reforms could align the country with more advanced African markets, unlocking greater capital flow and economic resilience. Consultancy bids for these projects close on July 15, 2025, setting the stage for an inclusive, transparent, and dynamic investment landscape that could power Ethiopia’s next growth chapter.