The Ethiopian Securities Exchange (ESX) has entered into a strategic partnership with FSD Africa and FSD Ethiopia to accelerate the growth and resilience of Ethiopia’s capital markets. The three institutions signed a Memorandum of Understanding (MoU) that lays the groundwork for collaborative efforts aimed at unlocking Ethiopia’s investment potential and broadening access to capital.
This landmark agreement comes on the heels of ESX’s successful launch—a historic milestone for Ethiopia’s financial sector. Over the next five years, ESX plans to list more than 50 companies across its main and growth markets. The exchange also aims to introduce a robust trading platform for both government and corporate bonds, including Sharia-compliant financial products like Sukuk.
At the heart of the new partnership is a commitment to pool technical expertise, financial resources, and strategic direction to support critical market development priorities. These include empowering prospective issuers, deepening investor education, diversifying financial products, and enhancing the institutional capacity of ESX to meet global standards of efficiency and transparency.
Under the MoU, ESX will lead the implementation of market development initiatives, allocate financial resources, and oversee the execution of key programs. FSD Ethiopia and FSD Africa will play an equally pivotal role by providing funding, technical advisory support, and strategic oversight. Together, the partners will coordinate their efforts through the ESX Market Development Committee to drive sustainable growth and alignment across all initiatives.
Tilahun Esmael Kassahun, CEO of ESX, hailed the partnership as a cornerstone for long-term progress.
“Developing a strong and transparent securities exchange is a milestone in Ethiopia’s financial history. This collaboration is instrumental in expanding opportunities for issuers, enhancing investor education, and driving product development and innovation,” he said. “By fostering a dynamic and inclusive capital market, we aim to empower businesses with access to diverse funding options while equipping investors with the knowledge and confidence to participate effectively.”
Hikmet Abdella, CEO of FSD Ethiopia, echoed the sentiment, emphasizing the broader impact the partnership is set to deliver.
“Capital markets are key to economic transformation. By working together, we are creating a sustainable financial system that will not only support businesses but also provide investment opportunities for individuals and institutions looking to participate in Ethiopia’s economic growth.”
Mark Napier, CEO of FSD Africa, highlighted the regional significance of the initiative.
“Building robust capital markets is essential to unlocking Africa’s economic potential. Our partnership with the Ethiopian Securities Exchange is not just about market development; it’s about empowering businesses and individuals alike. By channeling domestic institutional capital—valued at over US$2.3 trillion in Africa—into sustainable growth opportunities, we reinforce our commitment to making finance truly transformative for Ethiopia and the continent at large.”
This collaborative step signals a promising future for Ethiopia’s capital markets—one that holds the potential to transform how businesses grow and how investors engage with the country’s economy.
