The Ethiopian Securities Exchange (ESX) has reported its first audited profit, posting a net income of 81.8 million birr for the financial year ended 30 June 2025, according to its newly released audited financial statements. Total income reached 126 million birr, driven largely by 119.9 million birr in other income, mainly interest from short-term investments, while operating income from core exchange activities amounted to 6.16 million birr from interbank money market operations, listing and membership fees. Despite total expenses of 174.4 million birr, the exchange closed the year in the black, aided by a 33.5 million birr tax credit that boosted the bottom line.
ESX’s total assets stood at 1.11 billion birr at the end of the reporting period, reflecting heavy upfront investment in technology and infrastructure for the new market. Cash and cash equivalents amounted to 292.2 million birr, complemented by a 300 million birr short‑term investment and 423.2 million birr in non‑current assets, including 135.5 million birr in property, plant and equipment and 124.9 million birr in software and trading systems. The exchange remains strongly capitalised, with paid‑up capital of 1.03 billion birr and total equity of 916.8 million birr, while 75 percent of its shares are held by private investors, including Ethiopian Investment Holdings, Trade and Development Bank (TDB) and Ayat Share Company as major shareholders.
Employee salaries and benefits were the largest cost item at 66.3 million birr, followed by 57.4 million birr in other operating expenses and 45.8 million birr in amortisation and depreciation, underscoring the investment-heavy nature of the start‑up exchange. ESX has spent over 128 million birr on key technology platforms, including its automated trading system, broker back office, ESX Digital Academy and interbank money market system, which are capitalised as intangible assets. A further 162.9 million birr is booked as right‑of‑use assets for leased premises, with lease liabilities of 87.3 million birr on the balance sheet.
On the operational front, the year under review marked the formal launch of ESX’s securities market after the Ethiopian Capital Market Authority granted exchange and over‑the‑counter licences in December 2024. Wegagen Bank became the first company to list on 10 January 2025, followed by Gadaa Bank in June 2025, while Ethio Telecom secured regulatory approval to list and government Treasury bills began trading as the first fixed‑income instruments on the platform. ESX’s electronic interbank money market, launched in October 2024 in partnership with the National Bank of Ethiopia, saw more than 820 billion birr traded during the financial year, rising above 1 trillion birr by September 2025.
The board, chaired during the reporting year by Helaway Tadesse, held 16 meetings and oversaw the adoption of a five‑year strategic plan that targets 1 trillion birr in equity market capitalisation, 50 listed companies and 3 million retail investors by 2029. HST Audit LLP, the independent auditor, issued an unmodified opinion, stating that ESX’s financial statements for the year ended 30 June 2025 present fairly, in all material respects, the company’s financial position and performance in line with International Financial Reporting Standards and Ethiopian commercial law. The directors confirmed the exchange is a going concern and reported no material post‑balance‑sheet events, litigation or regulatory non‑compliance for the period under review.
