Ethiopia’s capital market is entering a period of rapid expansion, according to Dr. Tilahun Kassahun, CEO of the Ethiopian Securities Exchange (ESX). He revealed that four additional financial institutions are preparing to list in the coming weeks, bringing the total to at least nine expected listings by the end of the Ethiopian fiscal year.
Dr. Tilahun also noted that over 70 companies are currently in the registration pipeline on the equity side, signaling growing confidence in Ethiopia’s emerging capital market ecosystem.
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He highlighted the transformative impact of the interbank market, calling it “a clear indication of what an efficient market can do.” Annual interbank trading volume previously hovered around 100 billion birr, but following the market’s launch, activity has surged into the trillion-birr range. As a result, banks are now earning higher interest income through market-driven mechanisms.
Despite these gains, Dr. Tilahun emphasized that only a small portion of the public holds investment accounts, underscoring the need to deepen participation. He also stressed the importance of prioritizing debt market development and attracting institutional investors to ensure a balanced and resilient market structure.
Overall, Dr. Tilahun expressed strong optimism about the equity market’s trajectory as Ethiopia’s capital market reform continues to accelerate.
