The Ethiopian Ministry of Finance, Ethiopian Investment Holdings, and Nairobi-based FSD Africa have signed a cooperation agreement to establish the Ethiopian Securities Exchange (ESX), which will allow traders to buy and sell securities such as company stocks and bonds, giving Ethiopian entrepreneurs and businesses access to long-term financing.
Through the signed agreement, FSD Africa will fund almost all aspects to ensure a functioning exchange.
“The establishment of a securities exchange, the first in our nation’s history, through such a public-private partnership will usher in a new era for the Ethiopian financial industry and the economy as a whole. Today’s cooperation agreement between the Ministry of Finance, EIH, and FSD Africa is a first concrete step towards realizing our vision,” said Ahmed Shide, Minister of Finance after the signing ceremony – quoted by Walta.
According to reports, Ethiopia Investment Holdings – the country’s sovereign wealth fund, established earlier this year, has been tasked with establishing the Ethiopian Securities Exchange (ESX). The Holding Group, as the government of Ethiopia’s strategic investment arm, was recently entrusted with providing a strategic vehicle to attract foreign investment by, among other things, establishing a co-investment platform, consolidating assets for further monetization, unlocking values from current underutilized assets, and bringing the highest possible return on investment.
Since the initial announcement in 2020, Ethiopia’s National Bank has been working to establish the country’s first capital market by issuing a proclamation to govern the stock market and carry out other necessary procedures.
About FSD
Financial Sector Deepening Africa (FSD Africa) is created in 2012. FSD Africa is a 35 million pound financial sector development program based in Nairobi and funded by the UK Government’s Department for International Development.
FSD Africa is a market facilitator that applies a combination of resources, expertise, and research to address financial market failures. It has the mandate to work across sub-Saharan Africa on issues that relate to both ‘financial inclusion’ and ‘finance for growth.’
FSD Africa is also a regional platform. It fosters collaboration, best practice transfer, economies of scale, and coherence between development agencies, donors, financial institutions, practitioners, and government entities with a role in financial market development in sub-Saharan Africa. In particular, FSD Africa provides strategic and operational support to the FSD Network.
Source: Walta
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