Ethiopia’s financial landscape is currently on the cusp of a historic transformation as it gears up for the grand unveiling of its very first stock market, the culmination of over three years of strategic groundwork.
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.
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