The Ethiopian Securities Exchange (ESX) has declared the successful conclusion of its capital-raising initiative, exceeding its initial fundraising target by over two-fold. The effort, initiated in November 2023 and supported by extensive management efforts and roadshows in Addis Ababa, Nairobi, and London, garnered significant interest from both domestic and foreign investors.
The Exchange secured ETB 1.51 billion (US$ 26.6 million), equivalent to 240% of its intended capital raise of ETB 631 million (US$ 11.07 million). A total of 48 institutional investors from financial and non-financial sectors participated, comprising both domestic and foreign entities. ESX, established in October 2023 through a pioneering public-private partnership with the Government of Ethiopia via Ethiopian Investment Holdings (EIH), its strategic investment arm, saw notable interest from various investors, including FSD Africa, Trade and Development Bank Group (TDB), Nigerian Exchange Group (NGX), 16 domestic private commercial banks, 12 private insurance companies, and 17 other private domestic investors.
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Public sector entities, representing 25% of shareholding, include EIH and its subsidiaries such as Ethiotelecom and Commercial Bank of Ethiopia. The robust investor interest underscores confidence in ESX’s role in Ethiopia’s financial sector development and economic transformation. ESX aims to facilitate capital mobilization, enhance transparency, and promote corporate governance standards to stimulate investment, entrepreneurship, and sustainable development across sectors.
CEO Tilahun Esmael Kassahun (Ph.D) expressed excitement over exceeding expectations and highlighted the significance of strategic foreign investments in transferring technical knowhow and best practices. ESX also announced progress in releasing its draft Exchange Rulebook for public consultation, completing the technical evaluation for selecting its technology provider, and outlining plans for issuer and investor education leading up to the Exchange’s launch.
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