Ethiopia today finally launched Securities Exchange but with 1 listing only. Prime Minister Abiy Ahmed officially launched the Ethiopian Securities Exchange (ESX) today.
“We have officially rung the bell to launch the Ethiopian Securities Exchange – the first stock exchange for our country. Invest in Ethiopia — a fast-growing economy with immense potential and a dynamic trajectory toward prosperity,” the Prime Minister said in his social media posts.
The investors were hoping to see large profitable Ethiopian entities to be listed. However so far only Wegagen Bank has been listed on the new bourse. The bank is a mid level Ethiopian bank with no ranking in Africa’s top 100 bank list. Wegagen bagged a profit of over $18 million in the fiscal year ending in June last year.
Ethio Telecom, the Ethiopian state owned telecommunication company, is expected to be listed as well. Ethiopian Prime Minister earlier this year announced that Ethio Telecom will list 10% of its shares on the ESX. In October last year, Ethio Telecom offered 100 million shared to Ethiopian investors. The shares were sold through Telebirr mobile application.
Ethiopia government is in the process of liberalizing its economy, following a model supported by international financing institutions. It signed financing agreements with IMF and World Bank worth $20 billion recently.
Ethiopia is hoping to attract foreign investment through the launch of the stock exchange. It remains to be seen which other Ethiopian entities will be listed on the new stock exchange.
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