Addis Ababa, — Acting Executive Secretary of the Economic Commission for Africa (ECA), Antonio Pedro described the Ethiopian Securities Exchange (ESX) as a "game-changer for Ethiopia and the region."
Efforts are underway to develop Ethiopia's financial market as the government prepares to launch its first-ever securities exchange in 2024.
In light of this, representatives from the public and private sectors, potential investors, policymakers, and regulators met in Addis Ababa for a two-day workshop aimed at strengthening the capabilities of key market participants, preparing potential issuers and investors for the ESX's portfolio of instruments, and garnering support from key policy-making institutions and regulators.
Speaking at the opening of the workshop on Thursday, Antonio Pedro, Acting Executive Secretary of ECA, described the ESX as a "game-changer for Ethiopia and the region."
He stressed the importance of inclusivity, sustainability, and connectivity to harness the platform's full potential.
Pedro has also reaffirmed ECA's commitment to supporting African countries in their socio-economic development and expressed enthusiasm for partnering with Ethiopia on this groundbreaking financial market initiative.
Director-General of the Ethiopian Capital Market Authority (ECMA), Brook Taye said the ESX will serve as a "key part of a functioning Ethiopian capital market ecosystem."
The Director-General emphasized that ECMA was "fully committed to supporting the launch of the ESX and will work closely with the ESX team as it becomes a full-fledged securities exchange over the next year."
The workshop is co-organized by the Economic Commission for Africa (ECA), Ethiopian Investment Holdings (EIH), Ethiopian Securities Exchange (ESX), and FSD Africa.
Mark Napier, CEO, FSD Africa said: "We are pleased to be collaborating with the Government of Ethiopia in this historic initiative that will accelerate the development of capital markets in Ethiopia. Our assistance for establishing the Ethiopian Securities Exchange will leverage FSD Africa's vast expertise and experience in developing capital markets infrastructure across Africa. This support signals our long-term commitment to a thriving capital market that is deep, liquid, and efficient".
Michael Habte, ESX Project Manager said the platform will "play a critical role in the development and growth of the Ethiopian capital markets."
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He stated that ESX will deploy a "state-of-the-art electronic trading platform for the equity and fixed-income markets as well as an innovative alternative capital market that caters specifically to up-and-coming SMEs."
Michael underscored the importance promoting accessibility of the market to issuers and investors in Ethiopia and abroad, including Ethiopia's large retail and diaspora investor base.
"A thriving, deep, and liquid Ethiopian capital market will require the full support of valuable development partners to realize the catalytic development impact of a modern securities exchange as we embark on the launch of the Ethiopian capital markets," said Michael.
The capacity-building workshop addresses a wide range of topics, including the money market, fixed-income market, equity market, policymaking, and market development.
With technical support from ECMA and financial assistance from the Bill & Melinda Gates Foundation, the workshop aims to establish the groundwork for a prosperous securities exchange in Ethiopia.
This initiative can spur economic growth while fostering a robust financial ecosystem for investors and issuers alike, according to a press release by the ECA.
