New securities exchange in Ethiopia aims to attract private investors

Ethiopia inaugurated its securities exchange on Friday, marking a significant step in Prime Minister Abiy Ahmed’s efforts to liberalize the nation’s heavily regulated economy and attract private investment.

Upto now, only Wegagen Bank was listed on the Ethiopian Securities Exchange (ESX), but Tilahun Kassahun, the exchange’s CEO, anticipates that around 90 companies will be added over the next decade.

State-owned telecom company Ethio Telecom, gearing up for an initial public offering, is anticipated to make its shares available on the exchange.

Ethiopia, the second most populous nation in Africa with approximately 130 million residents, once boasted a securities exchange during the 1960s and 70s.

However, this financial institution was dismantled by the socialist military regime that came to power after the monarchy was overthrown in 1974.

By Dominic Wabwireh