The Ethiopian Capital Market Authority (ECMA) has officially licensed the Ethiopian Securities Exchange S.C. (ESX), ushering in a pivotal moment in the country’s financial sector. This development is part of Ethiopia’s macroeconomic reform agenda set into motion five years ago, aiming to cultivate a well-regulated capital market that supports long-term sustainable growth.
According to Ms. Hana Tehelku, Director General of ECMA,
“The licensing of our first securities exchange marks a transformative milestone in our journey to establish a vibrant capital market. This achievement signifies the foundation of a robust capital market, enabling businesses to access sustainable financing and providing investors with new opportunities to grow their wealth. As a regulator, we are committed to fostering transparency, integrity, and innovation to ensure this market thrives and contributes to our shared vision of economic prosperity.”
In addition to the main market license, ECMA has granted ESX an OTC (Over-The-Counter) market license, allowing companies that do not meet the listing requirements of the main segment to raise capital and trade their shares. This move broadens market participation, ensuring that both established corporations and smaller enterprises can benefit from Ethiopia’s evolving financial ecosystem.
With the establishment of ESX, investors gain access to diversified opportunities, and issuers find a reliable pathway to raise funds for growth and development. Under ECMA’s oversight, an emphasis on transparency, regulatory compliance, and investor protection will help foster trust, confidence, and efficiency.
As Ethiopia’s capital market infrastructure continues to take shape, ECMA strongly advises the public to rely on licensed intermediaries when engaging in securities transactions. Such diligence helps maintain the integrity and quality of professional guidance and services.
The licensing of ESX sets the stage for a dynamic future. As Ethiopia moves forward with a more inclusive and forward-looking financial environment, the country stands to gain from a market that not only supports economic aspirations, but also contributes to greater financial resilience and shared prosperity.
📸ECMA
