The Ethiopian Securities Exchange (ESX) announced a remarkable achievement, raising 1.51 billion Birr in capital, surpassing all expectations. This accomplishment highlights the high level of confidence exhibited by investors in both the exchange and Ethiopia’s capital markets, emphasizing their long-term prospects.
Tilahun Esmael, the Chief Executive Officer of ESX, expressed his excitement earlier today, revealing that the capital raised exceeded the initial target by an impressive 240 percent. The oversubscribed offering attracted participation from 48 investors across a range of sectors, comprising both domestic and foreign entities.
The Ethiopian Securities Exchange initiated its capital-raising endeavors in November 2023. Meticulously orchestrated road-shows were conducted in Addis Ababa, Nairobi, and London to garner interest and support. The CEO emphasized that the enthusiastic response received underscores the confidence and anticipation surrounding ESX’s pivotal role in advancing Ethiopia’s financial sector development and overall economic transformation.
The investor base is diverse and includes prominent foreign strategic investors such as FSD Africa, the Trade and Development Bank Group (TDB), and the Nigerian Exchange Group (NGX). Additionally, 16 domestic commercial banks, 12 insurance companies, and 17 other domestic investors have joined the venture. Tilahun disclosed that the public sector holds a 25 percent share, with participation from Ethiopian Investment Holdings and its subsidiaries, Ethio telecom, and the Commercial Bank of Ethiopia.
Expressing delight at the overwhelming response, the CEO stated, “We are thrilled to have exceeded all our expectations in terms of capital and excited by the overwhelming confidence shown by investors in the long-term prospects of both ESX and Ethiopia’s capital markets more broadly.”
In addition to the successful capital raise, Tilahun announced other significant milestones achieved by ESX. This includes the release of its draft Exchange Rulebook for public consultation and the completion of the technical evaluation to select its technology provider. These developments mark significant progress towards fully operationalizing ESX’s trading activities.
ESX has planned issuer and investor education programs in the coming months leading up to its official launch. As the first securities exchange in Ethiopia, ESX aims to drive economic growth, promote financial inclusion, and generate wealth for all Ethiopians. It will provide a platform for companies to raise capital, facilitate investment opportunities, and uphold transparency and corporate governance standards. The achievements of ESX signal a promising future for Ethiopia’s capital markets and its overall economic landscape.
