Ethiopia’s Securities Exchange Set to Begin Official Trading This Week











Ethiopia’s much-anticipated Securities Exchange (ESX) is poised to launch full-scale trading next week, marking a watershed moment in the country’s financial modernization journey. This milestone follows successful pilot transactions conducted just two weeks ago, paving the way for a fully operational, regulated securities market that promises to reshape investment and economic growth in Africa’s second-most-populous nation.

From Concept to Reality: The ESX Journey

Established in October 2023, the ESX represents Ethiopia’s first organized securities exchange, a critical step in diversifying the country’s economy and deepening its financial sector. Since its inception, the exchange has attracted substantial attention from both domestic and international investors, eager to tap into Ethiopia’s large market potential and dynamic economic reforms.

In January 2025, the ESX held its official inauguration, unveiling its electronic trading platform and integrated central securities depository. These modern systems allow for the efficient issuance, trading, clearing, and settlement of diverse financial instruments, including equities, treasury bills, corporate bonds, and Sharia-compliant securities.

Record-Breaking Capital Raising Campaign

The exchange’s credibility received an early boost through an exceptionally successful capital-raising campaign. Launched in November 2023, the initiative set out with a target of approximately 205 million birr but ultimately secured 1.5 billion birr (about $26.6 million)—an extraordinary oversubscription of 631%.

This impressive result reflects strong investor confidence. In total, 48 institutional investors participated, spanning sectors such as banking, insurance, and non-financial industries. The coordinated effort involved investor roadshows and negotiations in Addis Ababa, Nairobi, and London, signaling international interest in Ethiopia’s financial sector liberalization.

A Pioneering Public-Private Partnership Model

The ESX is structured as a public-private partnership, designed to balance state oversight with private sector dynamism. The Ethiopian government, through Ethiopian Investment Holdings, holds a 25% stake, while private investors own the remaining 75%.

Key foreign institutional investors include:

FSD Africa – a UK-backed development agency supporting capital market development

Trade and Development Bank Group (TDB) – a regional multilateral bank

Nigeria’s NGX Group – operator of the Nigerian Exchange

Domestic stakeholders include:

16 private commercial banks

12 private insurance companies

17 other institutional investors

State-owned giants such as Ethio Telecom and the Commercial Bank of Ethiopia also hold shares, underscoring the government’s strategic interest in ensuring the ESX’s stability and success.

Early Listings and Market Roadmap

Several companies are already lined up to participate in Ethiopia’s new capital market. Gadaa Bank S.C. recently confirmed its official registration with the ESX, becoming the second bank to do so after Wegagen Capital Investment Bank S.C., which received the exchange’s first business membership certificate earlier in 2025.

Looking ahead, the ESX has laid out an ambitious roadmap:

Up to 50 companies are expected to list in the next five years

More than 90 businesses targeted over the first decade

This expansion aims to deepen the domestic capital market, offering Ethiopian businesses new channels to raise funds while giving investors diversified opportunities.

Catalyzing Broader Economic Reforms

The ESX is a centerpiece of Ethiopia’s wider economic reform agenda, which seeks to modernize the financial sector, boost private sector development, and attract foreign direct investment.

By introducing a transparent, regulated marketplace for securities trading, the ESX will:

Improve access to long-term financing for both public and private enterprises

Enhance corporate governance and financial disclosure

Stimulate investment-led economic development

Promote financial inclusion

Tackling Financial System Challenges

Historically, Ethiopia’s banking system has lacked an interbank trading platform, making liquidity management difficult and driving up borrowing costs. The ESX is actively addressing this gap.

Since piloting its interbank trading platform in late 2024, the exchange has facilitated over 135 billion birr (approximately $1.1 billion) in trades. This development has already improved credit accessibility for businesses and reduced systemic funding pressures in the banking sector.

A Game-Changer for SMEs and the Broader Economy

Experts see the ESX as a transformative institution with the potential to unlock growth for Ethiopia’s small and medium-sized enterprises (SMEs). Traditionally reliant on bank loans—often limited and expensive—SMEs will now have access to a wider pool of investors through equity and debt issuance.

By mobilizing domestic and foreign capital, the ESX is poised to support entrepreneurship, job creation, and economic diversification. Development partners have praised the initiative as a model for sustainable, market-driven growth in Africa.



As the ESX prepares to begin official trading next week, it signals the start of a new era for Ethiopia’s financial system. With strong investor backing, robust technology, and a clear reform vision, the exchange is set to become a vital engine of economic modernization, driving investment, growth, and prosperity for millions of Ethiopians.