Ethiopian Securities Exchange Raises $26.6M, Ushering in a New Era for Ethiopia’s Markets

Ethiopia’s financial landscape is entering a new era with the historic launch of the Ethiopian Securities Exchange (ESX). Opened in January 2025, the ESX is the country’s first stock exchange in more than half a century — a major step toward modernizing its economy, boosting transparency, and attracting the investments needed to fuel long-term growth.

Capital Raise Exceeds Expectations, Signaling Strong Investor Confidence

One of the ESX’s biggest early wins was raising ETB 1.51 billion (about $26.6 million USD), surpassing its initial target by a staggering 240%. The overwhelming response highlights strong investor confidence in Ethiopia’s expanding financial sector.

A total of 48 institutional investors participated, including big names like FSD Africa, the Trade and Development Bank Group (TDB), and the Nigerian Exchange Group (NGX). The oversubscription wasn’t just a local story — it also showed the growing international appetite for tapping into Ethiopia’s market potential.

This successful capital raise lays a solid foundation for the ESX’s future, reinforcing Ethiopia’s ambition to become a major player in Africa’s financial ecosystem.

Advanced Technology Powers the ESX’s Trading Platform

Beyond the capital raise, the ESX is making waves with its investment in cutting-edge trading infrastructure. Partnering with Infotech Private Limited, the exchange has rolled out a fully electronic trading platform, along with a Broker Back Office and Order Management System.

These systems enable real-time trading, streamline operations, and ensure transparency — crucial features for building investor trust. By adopting advanced technology from the start, the ESX is positioning itself as a competitive, forward-looking marketplace on par with global standards.

Early Challenges Highlight Areas for Growth

While the launch has been largely successful, there have been early hurdles. The initial public offering (IPO) of Ethio Telecom, Ethiopia’s state-owned telecom giant, saw modest results. Despite offering 100 million shares, only 10.7% were sold, raising about ETB 3.2 billion (around $24.5 million USD).

Several factors played a role in the slow uptake, including restrictions limiting participation to Ethiopian citizens and caps on individual investments at 1 million Birr. These limitations highlight the need for broader investor access as the ESX grows.

Still, the long-term vision for the exchange remains strong. Over the next decade, the ESX plans to list more than 90 companies and aims to eventually outpace Kenya’s stock exchange in IPO activity.

Key Takeaways

• ETB 1.51 billion raised, exceeding targets by 240%.

• Advanced trading tech implemented to boost transparency and efficiency.

• Ethio Telecom IPO faced challenges but marked a historic first step.

• Ambitious growth plans, with over 90 listings targeted within 10 years.

The Ethiopian Securities Exchange represents more than just a new financial platform — it marks a leap forward for Ethiopia’s economic future. With modern technology, rising investor interest, and a bold growth strategy, the ESX is poised to become a cornerstone of Africa’s evolving capital markets.