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.



Related Posts

Share This Post
Linkedin
Google+


Most read

Latest News

Editor's pick

Commentaries

Tight Monetary Policies Risk Stifling Economic Growth, Undermining Business Confidence

In a bid to curb inflation, which is still at double digits, and preserve financial s...

Leads Lethal Legacy, a Poison We Choose to Ignore

Lead is everywhere, often hiding in plain sight, in the water we drink, the air we br...

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

Breaking the Chains to Protect the Vulnerable During Painful Reforms

Jan 18 , 2025

Adanech Abebie, the mayor of Addis Abeba, addressed last week a warm-up session for h...

Banks Struggle to Lend as Branches Bloom, Coffers Wither

A severe cash shortage squeezes the economy, and the deposit-to-loan ratio has slumpe...

The Year That Falls Short in Lofty Ambitions, Brittle Realities

Jan 4 , 2025

Time seldom passes without prompting reflection, and the dawn of 2025 should nudge Et...

The Bureaucrats Turn to Masters of Misrule, Architects of Uncertainty

Dec 28 , 2024

On a flight between Juba and Addis Abeba, Stefan Dercon, a professor of economic poli...

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

Acts of Kindness Create Lasting Legacies

A couple of weeks ago, I attended a wedding that felt like more than a union of two p...

Pride Overpowers Empathy, Civility

Last weekend, my family and I set out for a simple visit to relatives in the Old Airport neighbourhood. What should have been a routine trip...

Life Matters

Media Coverage of Africa Skews Towards Negativity

My recent search for news about Africa revealed a frustrating trend: an overwhelming focus on conflict, d...

The Burden of Beauty, Pressure for Perfection

Ethiopia's kaleidoscope of skin tones reflects its rich diversity. Complexion varies not just between ind...