Following ESX’s successful launch in January, the Ethiopian Securities Exchange (ESX) announced a partnership with FSD Africa and FSD Ethiopia to strengthen Ethiopia’s capital markets on Wednesday.
This partnership signifies a concerted effort to deepen the financial sector by coordinating technical, financial, and strategic resources across the three organisations.
Terms of the partnership
As part of the deal, ESX plans to list over 50 companies in its primary and expansion markets and create a specific platform for corporate and government bonds, including Sharia-compliant securities like Sukuks.
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To guarantee that ESX functions in accordance with global standards, the collaboration will also prioritise issuer assistance, investor education, product development, and institutional capacity building.
All three organisations will contribute their technical know-how, financial resources, and strategic oversight to the partnership. Project management and execution will be overseen by ESX, with financial and advisory support coming from FSD Ethiopia and FSD Africa. Efforts to promote sustainable market growth will be coordinated by a special ESX Market Development Committee.
Importance of the partnership
Tilahun ESX CEO Esmael Kassahun emphasized the importance of the collaboration by saying, “Developing a strong and transparent securities exchange is a milestone in Ethiopia’s financial history.”
He underlined that the program will increase business funding options and provide investors the information they need to participate in the market with confidence.
The CEO of FSD Ethiopia, Hikmet Abdella, emphasized the partnership’s transformational potential and pointed out that strong capital markets are essential for economic expansion.
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“By working together, we are creating a sustainable financial system that will support businesses and provide investment opportunities for individuals and institutions participating in Ethiopia’s economic expansion,” she said.
FSD Africa CEO Mark Napier reaffirmed the partnership’s overarching continental vision.
“Building robust capital markets is essential to unlocking Africa’s economic potential,” he said.
Napier stated that the partnership with ESX is in line with FSD Africa’s objective to make finance a transformative force throughout the continent and cited Africa’s enormous domestic institutional capital pool, which is valued at over USD 2.3 trillion, as a major driver of sustainable growth.