ADDIS ABABA – The National Bank of Ethiopia (NBE) is set to put in place a securities market infrastructure in partnership with Montran, a US-based financial payments solution provider
The Central Bank announced the collaboration to design and implement the Central Securities Depository (CSD) on Tuesday.
“The CSD is a critical market infrastructure that will enable modern monetary operation and securities trading for the upcoming Ethiopian Securities Exchange (ESX),” the national bank says.
The bourse – currently in the process of acquiring advanced trading solutions – will start operating later this year.
The effort to launch the Exchange via government-private partnership got a boost last week from the financial sector. Zemen Bank SC agreed to invest 47.5 million Birr in equity and take a 5% shareholder in the ESX, making it the first financial institution to do so.
The government has already offered local and foreign investors 75% of the bourse with issued share capital of about 900 million birr. The remaining 25% is owned by the Ethiopian Investment Holdings (EIH), the nation’s sovereign wealth fund, and its four subsidiaries including Ethio Telecom.