Ethiopia Launches Securities Exchange After 50 Years

Ethiopia is set to launch its first securities exchange in 50 years, aimed at attracting both domestic and international investments to revitalize its struggling economy. The initial public offering (IPO) of Ethio Telecom is projected to raise up to 30 billion birr (about $234 million) to support this initiative. Despite facing significant economic challenges, including inflation exceeding 30% in 2023, Ethiopia's government plans to list up to 50 companies on the new exchange within five years. This move is part of broader economic reforms to transition from a state-controlled to a market-driven economy, which includes enhancing capital access and liquidity for businesses. The opening of the Ethiopian Securities Exchange on January 10 is seen as a pivotal step towards economic integration and stability in the region. Analysts view this development as a crucial element in Ethiopia's economic and political transition, with hopes for significant growth in the coming years.