Ethiopia has launched a securities trading system in a bid to accelerate its economic growth and create a more structured investment environment.
At the official launch of the Ethiopian Security Exchange (ESX) on Friday, Prime Minister Abiy Ahmed said the exchange provides an organized platform for Ethiopian companies to issue stocks and bonds, helping them attract investors.
“In a historic milestone for our economy and financial system, we have officially rung the bell to launch the Ethiopian Securities Exchange,” Ahmed said in a statement shared on his social media.
Contrary to popular belief, this is not Ethiopia’s first securities exchange. Ethiopia had an earlier form of a stock market in the 1960s, but it ceased operations following the nationalization policies of the DERG regime in the 1970s.
The ESX is therefore a renaissance of the Ethiopian capital market rather than a completely new initiative.
The ESX is expected to encourage private investment, allowing local and foreign investors to have more opportunities to participate in the country’s economic progress.
-A well-functioning stock market is expected to improve liquidity, encourage savings and strengthen financial institutions.
“As Ethiopia lays the foundation for long-term financial stability and growth, we invite investors to seize this opportunity and contribute to building a strong capital market,” said Abiy Ahmed .
He said that with this launch of the ESX, Ethiopia is taking a decisive step towards integrating into global financial markets and strengthening its financial ecosystem.
MG/as/fss/Sf/teAPA
Related News :