In a landmark move signaling Ethiopia’s commitment to building a robust financial ecosystem, the Ethiopian Securities Exchange (ESX) and the International Finance Corporation (IFC) have officially launched the Ethiopia Money Market Capacity Building Project. The initiative is expected to play a pivotal role in shaping the future of Ethiopia’s capital markets by investing in critical human capital and institutional development.
The agreement was formalized through the signing of an Advisory Engagement Letter between ESX and IFC, a member of the World Bank Group and the world’s leading development institution focused on the private sector in emerging markets.
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The project’s core mission is to strengthen the foundational pillars of Ethiopia’s financial system by enhancing the skills of key capital market professionals. It will provide international-standard training and certification—particularly through ACI Financial Markets Association (ACI FMA)—to senior management and operational staff across banking and financial institutions. Focus areas include interbank money market operations, foreign exchange (FX) markets, treasury management, and back-office financial operations.
A significant component of the initiative includes support for establishing Ethiopia’s first national dealers association—a representative body for professionals in the FX and money markets. This is seen as a critical step toward aligning Ethiopia’s financial practices with global norms and improving transparency and efficiency within the market.
“This partnership with IFC is not just about technical training—it’s about laying the groundwork for a well-regulated, transparent, and dynamic money market in Ethiopia,” said Tilahun E. Kassahun, CEO of the Ethiopian Securities Exchange. “Capacity building and product development are the next frontiers in the evolution of our capital market.”
Aliou Maiga, IFC’s Director for the Financial Institutions Group in Africa, emphasized the strategic importance of the initiative: “Strong, well-functioning capital markets are foundational to a dynamic financial system and sustainable, diversified economic growth. This collaboration supports Ethiopia’s vision of a modern financial market and reflects the country’s broader economic ambitions.”
This project aligns with Ethiopia’s Homegrown Economic Reform agenda and the ongoing modernization of its financial sector. Until recently, Ethiopia had one of the least developed capital markets in Africa. But with the establishment of ESX and growing collaboration with international partners, the country is fast catching up.
The project also signals increased investor confidence in Ethiopia’s financial reform efforts, and it sets the stage for the launch of new financial instruments and more inclusive access to capital.
