Ethiopia Officially Launches Securities Exchange

Ethiopia launched a securities exchange on Friday, in what officials touted as a milestone in Prime Minister Abiy Ahmeds drive to open up the countrys tightly controlled economy to private investment.

Just one company, Wegagen Bank, was initially listed on the Ethiopian Security Exchange ESX, although ESX chief executive Tilahun Kassahun said he expected 90 companies to eventually join.

State-owned telecom Ethio Telecom, which is preparing for an initial public offering, is also widely expected to list shares on the exchange.

Ethiopia, Africas second most populous country with around 130 million people, had a securities exchange in the 1960s and 70s, but it was abolished by the socialist military government that overthrew the monarchy in 1974.

It has registered some of the continents fastest economic growth rates for years. Abiys moves to liberalise the economy since coming to power in 2018 have attracted interest from foreign companies, including Kenyas Safaricom, which won the countrys first private telecoms licence in 2021.