Ethiopia successfully secured $26.6 million for its first-ever securities exchange, the Ethiopian Securities Exchange (ESX), exceeding its initial target of $11.07 million. This fundraising paves the way for the ESX’s launch this year, attracting foreign investment to the Horn of Africa nation.
The Ethiopian government holds a 25% stake, while private and institutional investors take up the remaining 75%. A key investor is the Nigerian Exchange Group (NGX), one of Africa’s largest exchanges. NGX will offer technical expertise in developing the ESX’s structure, trading rules, and marketing strategy. Their collaboration has already produced a rule book for the ESX.
This investment by NGX and others signifies a vote of confidence in Ethiopia’s economic reforms led by Prime Minister Abiy Ahmed. The ESX is a crucial step towards a more liberalized and modernized Ethiopian economy. However, challenges remain. Ethiopia’s economy is still largely state-controlled, with limited private sector involvement and a lack of investment banks.
Despite these hurdles, the ESX launch is a significant development. It opens doors for foreign investors and paves the way for a more vibrant Ethiopian economy, fueled by a stronger private sector.
Leave a comment