Addis Ababa, January 2025 – In a historic step toward financial sector modernization and economic liberalization, Ethiopia has officially launched the Ethiopian Securities Exchange (ESX), marking the country's first formal securities trading platform since the 1970s.

The inauguration of ESX took place in Addis Ababa in early January 2025, with Wegagen Bank becoming the first company listed on the exchange. The launch is widely seen as a major milestone in Prime Minister Abiy Ahmed’s economic reform agenda, which aims to unlock new sources of capital for Ethiopian businesses and attract increased domestic and foreign investment.

According to the Ethiopian Capital Market Authority (ECMA), the government plans to facilitate up to 90 listings over the next 10 years, including major state-owned enterprises such as Ethio Telecom. The pipeline also includes private banks, insurance companies, manufacturing firms, and potentially fintech and technology startups.

The establishment of the exchange is part of a broader set of liberalization measures, which include the floating of the Ethiopian birr, the entry of foreign banks into the domestic financial sector, and the ongoing restructuring of the regulatory and institutional frameworks needed to support a dynamic market economy.

Speaking at the launch event, government officials emphasized that the ESX will serve as a transparent, rules-based platform for raising long-term capital, improving corporate governance, and fostering broader public participation in the national economy. The exchange is expected to improve liquidity, reduce the cost of capital for businesses, and offer new investment opportunities to both institutional and retail investors.

The ESX is structured as a public-private partnership, with support from domestic financial institutions, private investors, and international partners. Technical assistance and policy guidance have been provided by the World Bank Group and other development finance institutions to help build regulatory capacity, establish investor protections, and design a robust clearing and settlement system.

The exchange will initially focus on equity trading, with plans to expand to debt instruments, derivatives, and green financial products in future phases. The ESX is also expected to promote financial inclusion by encouraging Ethiopians to participate in formal savings and investment, while offering an exit mechanism for venture capital and private equity investors.

Market analysts view the launch as a transformational moment for Ethiopia’s financial sector and a signal to the international investment community that the country is open for business. With macroeconomic reforms now underway, the capital market is expected to play a vital role in financing infrastructure, industrialization, and innovation across the country.