Ethiopia’s newly launched stock exchange is targeting nine company listings before the end of 2025, as authorities seek to build traction in a market that has seen limited activity since its debut in January.
Tilahun Kassahun, CEO of the Ethiopian Securities Exchange (ESX), announced the plan last week, saying priority sectors include banks and financial institutions, according to local media reports. The target forms part of the exchange’s broader ambition to reach 50 listings by 2030.
To broaden participation, Kassahun said the ESX may also deploy an Over-the-Counter (OTC) platform for firms not yet ready for full listing, describing it as a way to “kickstart capital market participation.”
He added that Ethiopia’s “follower phenomenon” — where other firms list after a major player takes the lead — could help drive the next phase of activity.
So far, only three companies have been listed on the bourse. Wegagen Bank became the first to debut on launch day, followed in June by Gadaa Bank, one of the country’s youngest lenders.
In the same month, Ethio Telecom’s partial privatisation drew record interest, with more than 47,000 investors purchasing a 10% stake — a landmark offering that briefly lifted hopes for the emerging market.
Momentum has since slowed, with no new listings recorded in the third quarter.
Still, efforts to expand the pipeline are ongoing. The IPO Clinic — a joint initiative between the Ethiopian Capital Market Authority (ECMA) and the International Finance Corporation (IFC) — is helping firms prepare for listing through technical and governance support.
Officials say the programme will be central to achieving the exchange’s short-term goals.
Launched on January 10 through a public–private partnership, the ESX represents a major step in Ethiopia’s financial liberalisation drive.
For decades, companies relied on retained earnings, state funding, or bank loans, with no formal equity market to raise capital. The new exchange aims to change that by offering transparent price discovery and access to a wider investor base, including small and medium-sized enterprises.
The ESX’s debut coincided with broader reforms opening the banking sector to foreign ownership, which has since drawn interest from Africa’s largest lenders, including Kenya’s KCB Group and Equity Group.
Beyond recent reforms, Ethiopia’s large, underbanked population and strong growth outlook deepen its appeal.
With a population of more than 130 million and limited banking penetration, Ethiopia offers a large untapped market for foreign players, further deepening its appeal.
