Ethiopian Investment Holdings (EIH) and its four enterprises becomes first founding members of the Ethiopian Security Exchange (Image ESX/X).
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Ethiopian Securities Exchange onboards EHI & its Subsidiaries as Founders

ADDIS ABABA – State-owned Ethiopian Investment Holdings (EIH) and its four subsidiaries have signed a deal that makes them founding members of the Ethiopian Securities Exchange (ESX) Share Company.

The move is a part of Ethiopia’s push to develop its own capital markets as authorities plan to launch the Security Exchanges in 2024.

The ESX is being established as a share company by the government-private partnership as per the 2021 Capital Markets Proclamation.

Today, EIH and its four subsidiaries have made a big step towards establishing the Share Company by inking a memorandum of Association or MoA.

“We are excited to announce that the ESX Share Company establishment document (MoA) is signed today among EIH and four of its subsidiaries,” the Exchange says.

The signatories include Ethiopian Shipping and Logistics, Ethio Telecom, Ethiopian Insurance Corporation, and Berhan Ena Selam Printing Enterprise.

ESX’s Median Board of Directors
[Image/ESX]

On the same day, the ESX announced the appointment of the Exchange’s median board of directors with Helaway Tadesse as a chairman.

The board also has EIH’s Deputy CEO Yasim Wohabrabbi, Eleni Gabremadhin, Fekadu Petros, Hinjat Shamil, Tewodros Mekonnen, and Zemedeneh Nigatu as members.

The Board will open the call for subscriptions by other investors, says Exchange which has already launched a roadshow last May in a bid to raise capital.

ESX’s 75% share is on offer to investors. The government will hold the remaining 25% through the EIH.

Authorities expect the ESX to serve as a key part of a functioning Ethiopian capital market ecosystem when it becomes a full-fledged securities exchange over the next year.

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