Addis Ababa, Ethiopia – April 09, 2025 – The Ethiopian Securities Exchange (ESX), FSD Africa, and FSD Ethiopia have signed a Memorandum of Understanding (MoU) to strengthen Ethiopia’s capital markets. In the next five years ESX aims to list more than 50 companies in its main and growth market, introduce a platform for the listing and trading of government and corporate bonds, including Sharia compliant products such as Sukuks.
Following the successful launch of ESX, this partnership will establish a framework between the three organizations to pool in their resources and efforts towards targeted market development activities. Through this collaboration, the three organizations will work together to provide technical expertise, financial resources, and strategic guidance aimed at supporting issuers, investor education, product development and enhance the institutional excellence of ESX to ensure it operates efficiently and meets international standards.
Tilahun Esmael Kassahun, CEO of ESX, emphasized the importance of this partnership, stating,
“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. 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.”
As part of the agreement, ESX will commit financial resources aimed at market development and lead the project management, oversee implementation, and ensure the quality of market development activities, while FSD Ethiopia and FSD Africa will contribute funding, technical advisory, and strategic oversight. The three parties will also collaborate through the ESX Market Development Committee to align efforts and drive sustainable market growth.
Hikmet Abdella, CEO of FSD Ethiopia, highlighted the broader impact anticipated, saying,
“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, added,
“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.”
