Investor roadshow sets stage for Ethiopian securities exchange launch
Investor roadshow sets stage for Ethiopian securities exchange launch
“The amount of value trapped in Ethiopian companies is exceptional” - Dr. Brook Taye, Director General of the Ethiopian Capital Market Authority
LONDON, UK - The Ethiopian government has officially launched the country's first-ever securities exchange. Although not expected to start trading until sometime during 2024, the government is actively seeking private capital investments into the soon-to-be established Ethiopian Securities Exchange (ESX).
The creation of the ESX forms the culmination of a series of pro-business reforms by the government in recent years. To date, 25% of the funding required for the ESX has already been secured from the US$16 billion state sovereign wealth fund Ethiopian Investment Holdings (EIH).
“The development of the capital markets is a key element of the financial sector reforms,” said Semereta Sewasew Aweke, State Minister of Finance for Economic Cooperation, at the annual AFSIC investment conference in London. “The establishment of a capital markets authority aims to support the development of our national economy through the mobilisation of capital.”
With a population of around 120 million people, Ethiopia is one of Africa's largest economies. According to the African Development Bank, the economy is expected to grow by 6% in 2023, making it one of the fastest growing economies in the world this year.
“The amount of value trapped in Ethiopian companies is exceptional,” said Dr. Brook Taye, Director General of the Ethiopian Capital Market Authority. “Up to this point, we haven't had a centralised mechanism to extract the true value of our companies.”
State-owned enterprises are an important element in the country's economic makeup. EIH holds 26 state-owned enterprises including the Commercial Bank of Ethiopia, the Ethiopian Insurance Corporation, and the Ethiopian Airlines Group. It plans to provide equity stakes in some of these businesses via the ESX.
Others in the minister's AFSIC delegation included senior representatives from the Ethiopian Securities Exchange, the Ethiopian Investment Commission, the Ethiopian Investment Holdings, and the Ethiopian Capital Market Authority.
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