Ethiopia launched its long-awaited securities exchange on Friday, a significant milestone in Prime Minister Abiy Ahmed’s efforts to liberalize the country’s economy.
While only one company, Wegagen Bank, was initially listed, officials anticipate that 90 companies will join the Ethiopian Securities Exchange (ESX) within the next decade. The highly anticipated initial public offering of Ethio Telecom, the state-owned telecom company, is also expected to take place on the exchange.
Prime Minister Abiy Ahmed hailed this event as a historic milestone for Ethiopia’s economic and financial landscape.
Ethiopia, with a population of around 130 million, has experienced strong economic growth in recent years. Abiy Ahmed’s economic liberalization reforms, which have attracted significant foreign investment, including from companies like Kenya’s Safaricom, have played a crucial role in this growth.
However, the impact of the recent civil war in the Tigray region and concerns about the government’s commitment to full liberalization have presented challenges to sustained economic progress.
Despite these challenges, the launch of the Ethiopian Securities Exchange marks a significant step towards further economic development and provides new opportunities for both domestic and foreign investors.
