Ethiopia Eyes 50 Listings in Maiden Exchange Across Five Years

A five-year collaboration between FSD Africa, FSD Ethiopia, and the Ethiopian Securities Exchange outlines plans for 50 listings in the country's nascent capital market. The Exchange aims to list the companies across both its main and growth market over a five-year period. According to a joint statement issued today, the parties agreed to provide technical expertise, financial resources, supporting issuers, investor education, product development and enhancing institutional excellence.

Notably, ESX is also set to work on a platform for the listing and trading of government and corporate bonds, including Sharia-compliant products such as Sukuks. These financial instruments, often referred to as Sharia-compliant bonds, are structured to comply with Islamic law, offering an alternative to conventional bonds by avoiding interest payments and instead sharing profits derived from tangible assets. 

The three parties will also collaborate through the ESX Market Development Committee to align efforts and drive sustainable market growth.  

“This collaboration is instrumental in expanding opportunities for issuers, enhancing investor education, and driving product development and innovation.” Said Tilahun Esmael Kassahun (PhD), CEO of ESX. 

Mark Napier, CEO of FSD Africa, highlighted that the partnership benefits extend beyond market development. 

“It’s about empowering businesses and individuals alike,” he noted.

Ethiopia’s exchange began operations back in January, with Wegagen Bank S.C being the first company to list shares. The state-owned telecom operator, ethiotel, which issued 100 million ordinary shares to local investor back in October is also expected to list in the Exchange.