Ethiopia’s securities market is preparing to accommodate eight securities through an over-the-counter (OTC) market, offering an alternative trading platform for companies that do not meet the Ethiopian Securities Exchange’s (ESX) main listing requirements or have strategically chosen a different route to the capital market.
Yodit Kassa, CEO of the Ethiopian Securities Exchange, said the OTC market would complement the main exchange as the country gradually develops its capital market infrastructure and expands opportunities for businesses to access investment.
According to ESX, seven securities are currently actively traded on the main exchange, comprising shares in one telecommunications company and six banks. With another security expected to enter the market in October, the exchange aims to add approximately seven more to reach its target.
The OTC market is designed to serve companies falling outside conventional listing criteria, as well as those opting to trade through the alternative platform. This framework is expected to broaden participation in Ethiopia’s developing securities market, though the specific eight securities joining the OTC platform have not yet been named.
Beyond equities, the ESX is working to build trading in government debt securities and other financial instruments as it seeks to establish a comprehensive capital market ecosystem.
The exchange currently lists approximately 48 active government Treasury bill securities covering maturities of 28, 91, 182, and 364 days. However, Yodit acknowledged that an active secondary market for these instruments has yet to develop.
While Treasury bills are listed following their issuance through the government’s auction process and registered under the Central Securities Depository, the exchange’s next challenge is encouraging investors to trade them on the secondary market after initial issuance. Developing this secondary market would allow holders to sell securities before maturity, improving liquidity, enhancing price discovery, and laying the groundwork for longer-term debt issuance.
“We want to progressively build the market in terms of those products and see long-term debt issuance,” Yodit said, outlining the exchange’s approach to expanding the debt market.
The exchange has also recorded progress in other segments of the financial market. According to the CEO, Ethiopia’s interbank money market has facilitated transactions between commercial banks for nearly two years, while a foreign exchange market was launched in January 2026 with support from the National Bank of Ethiopia. The exchange stated it will provide further official details on foreign exchange developments once the central bank releases relevant information.
The ESX currently has nine trading members, including licensed investment banks and broker-dealers. Across the broader capital market, approximately 20 to 25 licensed entities are supporting market activities, including trading and transaction advisory services.
This expansion of market participants is expected to bolster the exchange’s efforts to attract issuers, investors, and intermediaries as Ethiopia continues to build its capital market foundation.
