Ethiopia to Launch Stock Exchange Soon –


Addis Ababa, May 18, 2022 (Walta) – The creation of the Ethiopian Securities Exchange (ESX) seems to be finally happening after the initial finalization announcement made in 2020.

The Ethiopian Ministry of Finance, the Ethiopian Investment Holdings, and FSD Africa signed a cooperation agreement to establish ESX today.

“The establishment of a securities exchange, the first in our nation’s history, through such a public-private partnership will usher in a new era for the Ethiopian financial industry and the economy as a whole. Today’s cooperation agreement between the Ministry of Finance, EIH, and FSD Africa is a first concrete step towards realizing our vision,” said Ahmed Shide, Minister of Finance after the signing ceremony.

Through the signed agreement, FSD Africa will fund almost all aspects to ensure a functioning exchange.

Apart from the Addis Ababa Share Dealing Group which was operating during the Derg regime, Ethiopia has not managed to establish a capital market till now.

Even though Ethiopia is one of the biggest five economies in sub-Saharan Africa it does not have a stock exchange. Now, it seems that Ethiopia will finally have a functioning exchange, which will make it the 30th exchange on the continent according to Finance in Bold.

Following the coming to power of Prime Minister Abiy Ahmed in 2018, the country start opening up to establish a stock exchange governing body.

The African Linkage Project (AELP), a value chain for brokerage firms was created to try and facilitate investment flows through African stock exchanges.

Throughout this process, the African Securities Exchanges Association (ASEA) will link 7 African capital markets together. That will help companies bring in new capital and create value for shareholders.

Financial Sector Deepening Africa (FSD Africa) is created in 2012. FSD Africa is a 35 million pound financial sector development program based in Nairobi and funded by the UK Government’s Department for International Development.

FSD Africa is a market facilitator that applies a combination of resources, expertise, and research to address financial market failures. It has the mandate to work across sub-Saharan Africa on issues that relate to both ‘financial inclusion’ and ‘finance for growth.’

FSD Africa is also a regional platform. It fosters collaboration, best practice transfer, economies of scale, and coherence between development agencies, donors, financial institutions, practitioners, and government entities with a role in financial market development in sub-Saharan Africa. In particular, FSD Africa provides strategic and operational support to the FSD Network.


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