Ethio Telecom CEO speaking at the review meeting on Tuesday.

Authorities Assess Preparations for Capital Markets

ADDIS ABABA – Authorities on Tuesday assessed progress in operationalizing the capital markets as well as Ethio Telecom’s readiness to go public ahead of the Ethiopia Securities Exchange (ESX) launch.

The ESX, the first and only organized and regulated securities exchange, plans to start operating in the final quarter of the current Ethiopian fiscal year.

Its key shareholder, Ethiopian Investment Holdings is expected to boost the Exchange with listings of the public enterprises that are under its portfolio.

Ethio Telecom is one of them.

On Tuesday, Prime Minister Abiy Ahmed and the Board of the Ethiopian Investment Holdings (EIH) met to assess Ethio Telecom’s readiness to go public.

The meeting also evaluated the Ethiopian Capital Markets Authority or ECMA’s progress in operationalizing the capital markets.

After the meeting, Abiy noted: “The introduction of a stock market and exchange in Ethiopia is poised to be a game-changer, supporting Ethiopia in achieving its growth aspirations and attracting new capital.”

“This marks an exciting chapter for the nation,” the Prime Minister added.

The ECMA is gearing up for the commencement of the capital market in the country. The regulatory body recently finalized legislation to start licensing various actors in the capital market ecosystem ahead of the launch of the ESX.

Meanwhile, the Exchange has continued its fundraising drive to raise capital. Last week, Siinqee Bank became the second private bank in the country to join the ESX as a financial investor, following Zemen Bank. ESX’s 75% share is on offer to investors. The government holds the remaining 25% through the EIH.