The Ethiopian Securities Exchange (ESX) has approved 11 new listings, with the first of these new companies expected to begin trading next week. This expansion will bring the total number of listed companies on the ESX to 15. This news comes as the Ethiopian Capital Markets Authority (ECMA) is actively reviewing 66 additional prospectus submissions from companies across various sectors, including financial services like banks, insurers, and micro-lenders. The ESX began trading in January 2025 and aims to have 9 listed companies by the end of Ethiopia's 2025/26 fiscal year, with a long-term goal of 90 listed companies within its first decade of operation.
Among the companies progressing towards listing, four have secured Approval in Principle for the ESX's Main Market: Ayat S.C., Sidama Bank, Nib Insurance S.C., and ZamZam Bank. Six banks, including Awash Bank, Dashen Bank, Bank of Abyssinia, Abay Bank, Anbesa Bank, and Amhara Bank, are also moving closer to listing. Awash Bank, Ethiopia's largest privately held bank, recently listed 37.9 million of its 54 million registered shares, becoming the fourth company to list on the ESX. Previously, Dashen Bank aimed to raise $41 million by offering 2.2 million new ordinary shares to existing and qualified institutional investors, high-net-worth individuals, and retail investors.
The Ethiopian government is encouraging listings through incentives, such as a reduction in business income tax from 30% to 25% for three years for non-financial companies that list their shares. This incentive, introduced in March, signals the government's commitment to developing a robust securities market. The ESX has seen some initial trading activity, with Wegagen Bank (listed on January 10, 2025) and Gadaa Bank (listed on June 13, 2025) having shares actively traded. Interbank money market trading, facilitated by the ESX, has already exceeded $12.7 billion in cumulative value by March 2026, launched in October 2024.
The growing pipeline of listings is seen as crucial for building liquidity and establishing market benchmarks in Ethiopia's nascent capital market. While equity trading is still limited, authorities expect commercial banks to play a significant role in the early development due to their size and established shareholder bases. Approximately 2,500 trading accounts have been opened, and around 15 licensed service providers, including investment banks and securities dealers, are active. The ESX also plans to introduce market indices by June 2026 and finalize frameworks for foreign investor participation to deepen market depth and attract institutional capital.
