Int’l Investment Banks, Companies Desirous to Participate in Ethiopian Securities Exchange

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Addis Ababa May 27/2022/ENA/ National Bank of Ethiopia disclosed that investment banks from across the globe and companies are expressing interest to take part in the Ethiopian Securities Exchange (ESX).

Macroeconomic Advisor at the Ethiopian National Bank, Melese Minale told ENA that approval of the capital market is a big step in order to regulate and supervise the capital market as well as to detect, mitigate, and prevent systemic risk.

He added that the National Bank has been undertaking various efforts to realize the aspired capital market in the country.

Ethiopian Securities Exchange is similar to stock exchanges found in other countries, Melese stated, and added that the name was changed so that it includes other things than only stock exchange.

He recalled that a cooperation agreement for the establishment of Ethiopian Securities Exchange (ESX) was signed by Ethiopian Investment Holdings (EHI), Ministry of Finance, and Financial Sector Deepening Africa (FSD Africa).

The Macroeconomic Advisor pointed out that three renowned global companies have shown the desire to participate in Ethiopian Securities Exchange (ESX) and technical discussions are underway.

“Some Global Exchanges have approached us right after the proclamation was enacted. They have two kinds of interest. Some of them need to provide technology while the others want to bring technologies by themselves and engage in the business by investing in the sector as a stakeholder.

We prefer and give priority to the second group. We want those companies that bring the technology, knowledge and capital and work with us as a strategic partner. We consider such companies as strategic partners.  In this regard, some three international exchange companies have approached us and we have discussed on technical levels,” he elaborated.

Furthermore, Melese stated that companies that can bring the necessary technology and participate as stock holder are welcome.

In this regard, he pointed out that Financial Sector Deepening Africa (FSD Africa) has signed an agreement to work as a share company in Ethiopian Securities Exchange (ESX) and this will lure others.

Investment banks, securities dealer, and others are waiting until the Ethiopian Capital Market Authority starts issuing license.

“There are several Exchanges eagerly waiting to come and engage in the business by bringing new technology or Distributive Leger or Block chain technology. Other such as investment banks, capital market service providers and investment dealer have also been waiting for the ratification of the licensing framework bill and the commencement of operation by the Authority.”

Moreover, the Ethiopian Securities Exchange (ESX) will serve as a technology transfer. This will expedite knowledge transfer and technology.  

“In this regard, several huge international Exchange firms have informally been expressing their interest  and demand.  Therefore, the major task of this project team will be to confer with these Exchange companies on how they will bring the technology, knowledge, and capital and commence operation after designing its business plan,” the advisor stated.

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