Ethiopia has officially launched its first securities exchange, marking a significant step in liberalizing its economy. The Ethiopian Securities Exchange (ESX) debuted Friday with Wegagen Bank as its inaugural listed company.
Prime Minister Abiy Ahmed described the moment as a turning point in Ethiopia’s economic journey. “In a historic milestone for our economic and financial landscape, we have officially rung the bell to launch the Ethiopian Securities Exchange,” he announced on social media.
The exchange aims to list up to 90 companies within the next decade, said ESX CEO Tilahun Kassahun. State-owned Ethio Telecom, which is gearing up for an initial public offering, is also expected to join the platform.
This marks the first securities exchange in Ethiopia since the 1960s and 70s when a similar institution was dissolved under the socialist military government. Today, the ESX embodies a new era of economic transformation and opportunity.
Abiy’s reforms since 2018 have attracted global interest, including Safaricom, which became the country’s first private telecom operator in 2021. Yet, challenges persist. Armed conflicts and questions about the government’s commitment to liberalization have tempered optimism.
Financial analyst Mark Bohlund expressed doubts about significant foreign participation, citing concerns over corporate transparency and liquidity. “Ethio Telecom is the only company likely to meet international investor standards,” he noted.
Despite skepticism, the initiative has been hailed as historic by Ethiopian investors. “For the first time, local investors can become true stakeholders in Ethiopia’s largest companies,” said Henok Assefa, founder of Precise Consult.