In a landmark event for Ethiopia’s financial sector, the Ethiopian Securities Exchange (ESX) officially began public trading of government treasury documents and other securities today. This historic milestone signals the formal inauguration of Ethiopia’s capital market, the culmination of years of strategic economic reforms aimed at modernizing the country’s financial system.
The inauguration ceremony, held on July 11, was jointly organized by the National Bank of Ethiopia (NBE), the Ethiopian Capital Market Authority (ECMA), the Central Securities Depository (CSD), and the ESX. The event marks a new chapter in Ethiopia’s economic development, promising enhanced transparency, expanded market-based financing options, and improved access to investment opportunities for a broader range of participants.
Since 2011, the Ethiopian government has pursued a deliberate strategy to establish a robust capital market system. This effort, rooted in the country’s indigenous economic reform agenda, has focused on developing comprehensive legal frameworks, building key institutions, and deploying modern technological infrastructure to support market operations.
A centerpiece of this infrastructure is the state-of-the-art electronic Central Securities Depository (CSD), established under the National Bank of Ethiopia. The CSD facilitates the issuance, trading, and secure custody of both public and private sector securities and is fully integrated with the ESX’s electronic trading platform. It serves as a critical foundation for post-trade processes, ensuring efficiency and security in market transactions.
Mamo Mihretu, Governor of the National Bank of Ethiopia, emphasized the institution’s commitment to nurturing the capital market ecosystem. “The NBE is dedicated to enhancing the capital market system and its supporting infrastructure through continuous innovation and collaboration, supporting Ethiopia’s long-term financial prosperity,” he said.
The Ethiopian Capital Market Authority has played a pivotal regulatory role in shaping the market’s development. Hana Tehelku, ECMA Director General, hailed the launch as a historic achievement for the nation’s financial sector. “This milestone opens new investment avenues and reflects years of dedication to building a transparent, inclusive, and resilient capital market that underpins sustainable economic growth,” he remarked. He further affirmed the Authority’s commitment to fostering a secure and adaptable market environment that benefits all Ethiopians.
Prior to today’s launch of government securities trading, the ESX has been operating a cash market platform for banks in partnership with the National Bank and commercial banks since October 2023, laying important groundwork for broader market activity.
Tilahun Kassahun (PhD), CEO of the Ethiopian Securities Exchange, praised the collaborative efforts behind this achievement. “Today’s event is a testament to the hard work and dedication of all stakeholders who have contributed to strengthening Ethiopia’s capital market over recent years,” he said. He noted that the registration and trading of government debt securities on the exchange mark the opening of a new chapter for Ethiopia’s debt securities market and demonstrate the effectiveness of the country’s modern market infrastructure.
