The Ethiopian Securities Exchange (ESX) is the primary securities exchange in Ethiopia. Its establishment is part of a broader initiative by the Ethiopian government to enhance the country's financial infrastructure and provide a platform for businesses and investors to engage in securities trading. The development of the ESX is in line with the government's objective to diversify the financial sector and offer more investment opportunities to both domestic and foreign investors.[3]
History
The concept of a securities exchange in Ethiopia is not entirely new. In 1960, Ethiopia initiated its journey into share trading by establishing an institutional framework and inaugurating a share exchange department within the State Bank of Ethiopia. As the share market grew, the Share Trading Group was formed in 1965. This group consisted of six institutions that traded shares among themselves through open bidding. This initiative positioned Ethiopia among a select group of African nations with a comprehensive stock market. However, this early attempt at establishing a stock market came to a halt in 1974 when major companies and financial institutions were nationalized and brought under government control.[4]
Establishing a securities exchange in Ethiopia has been planned for several years. The Ethiopian government has made efforts since 2019 for this vision. In 2023, the country announced the upcoming launch of its first-ever securities exchange.