ADDIS ABABA – The Ethiopian Securities Exchange (ESX) officially started a roadshow to raise capital on Tuesday.
The ESX project team held a market-sounding and capital raise soft roadshow event in Addis Ababa, showcasing its business plan and financials to investors.
ESX’s 25 percent share is owned by the Government through the Ethiopian Investment Holdings (EIH), a firm set up in Dec 2021 by the decree of Parliament to act as a sovereign wealth fund for Ethiopia.
The remaining 75 percent of the Exchange is open to both international and domestic private investors.
The ESX project team conducted the soft opening to interested investors in the finance sector including banks and insurance companies. Going forward, officials say it will reach all pertinent institutions.
“The roadshow marks a significant step towards the full operationalization of the ESX in the year 2016 (Ethiopian calendar),” said Brook Taye, Director General of the Ethiopian Capital Market Authority or ECMA.
The ECMA, an entity mandated to regulate the securities market in Ethiopia, will next start issuing licenses to capital market services providers including investment advisors, market maker, and securities brokers and dealers, within a few months.
“The legal framework to issue the licenses has already been established,” Brook said, indicating approval of the Capital Market Service Providers Licensing and Supervision directive by ECMA’s board of directors.
The authority is also preparing additional directives that will breathe life into the securities market.
The Ethiopian Security Exchange, or the stock market, is scheduled to become operational starting January 2024.
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