After years of preparation and anticipation, Ethiopia’s inaugural securities exchange, the Ethiopian Securities Exchange (ESX), was officially launched on June 10.

Wegagen Bank became the first publicly traded entity on the platform in a ceremonial listing conducted in Addis Ababa, marking a significant change in the financial architecture of the country.

Ethiopia was devoid of a formalized capital market system for an extended period.

The ESX will provide an opportunity for small and medium-sized enterprises (SMEs), cooperatives, and large firms to access equity capital, a resource that was previously unavailable to many businesses that were confronting local development challenges.

“This is a significant milestone that will accelerate economic transformation,” stated Tilahun Kassahun, CEO of ESX.

“The ESX is a public-private initiative that is overseen by Ethiopia’s Capital Market Authority and partially backed by Nigeria’s NGX Group. We are providing entrepreneurs and institutions with a new pathway to growth, innovation, and transparency.”

Businesses, particularly those engaged in agriculture, manufacturing, and services, are currently in the process of preparing for potential listings.

Haile Ayele, proprietor of an expanding agribusiness in Hawassa, declared, “I never dreamed of listing my company on a stock exchange.” “However, it appears feasible at this time.”

50 listings are the ESX’s objective over the next decade.

According to experts, it will act as a beacon for both domestic savings and international investments, thereby releasing the much-needed capital in one of Africa’s most promising economies.