The African Development Bank (AfDB) and the Ethiopian Capital Market Authority (ECMA) have signed a $400,000 grant agreement to establish Ethiopia’s first public disclosure platform and introduce new financial products at the Ethiopian Securities Exchange (ESX), including exchange-traded funds (ETFs), sukuks, and green bonds.
The grant, provided through the Capital Markets Development Trust Fund (CMDTF), marks a significant step in Ethiopia’s capital market journey. It builds on earlier AfDB support, including the drafting of Ethiopia’s capital market legal framework in 2021, which paved the way for the launch of the ESX.
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The public disclosure platform is expected to enhance market transparency by enabling timely and accurate dissemination of company information to investors, shareholders, and the wider public. This will play a critical role in fair price discovery, investor confidence, and decision-making.
On the product side, the rollout of ETFs, sukuks (Sharia-compliant instruments), and green bonds will diversify investment opportunities and attract both domestic and international investors.
“We are proud to collaborate with the African Development Bank’s Capital Markets Development Trust Fund on this vital project,” said Ms. Hana Tehelku, Director General of ECMA, during the signing in Addis Ababa. “The support for ECMA’s infrastructure development and ESX’s capacity building and product diversification will be instrumental in attracting investment, driving economic growth, and expanding access to long-term financing.”
Mrs. Akane Zoukpo Sanankoua, AfDB’s Manager for Capital Markets Development, emphasized the Bank’s broader vision:
“The Ethiopia Capital Market Development Support Project reinforces our commitment to building resilient capital markets that mobilize long-term resources while unlocking new financial opportunities.”
Also present at the ceremony was Mr. Sebastian Beyenburg, First Secretary at the Embassy of Luxembourg, representing donors to the CMDTF, a multi-donor trust fund established in 2019. The fund is backed by partners including the Netherlands, Luxembourg, and Sweden.
As of September 2025, the CMDTF manages an active portfolio of $6 million across 16 African countries. Ethiopia’s project marks the first CMDTF-backed initiative outside West Africa, underscoring AfDB’s growing commitment to support financial sector development in new regions.
With the ESX’s launch on the horizon, this grant represents more than just funding—it is a strategic push to strengthen Ethiopia’s financial infrastructure, diversify products, and prepare the market to play a central role in the country’s economic transformation.
