Ethiopia's Stock Exchange Starts Slow Despite Grand Ambitions
Ethiopia’s new stock exchange, the Ethiopian Securities Exchange (ESX), is aiming to become one of Africa’s largest within five years. Yet on a recent Monday morning, its trading floor stood empty, with no transactions taking place. So far, only three banks and the state-owned Ethio Telecom are listed on the exchange. The ESX launched with high ambitions, but activity remains limited. Yodit Kassa, head of operations, expects at least a dozen stocks to be trading by the end of the year. Meanwhile, plans are underway for a major financial hub in Sengatera, Addis Ababa, worth hundreds of millions of euros. This project, developed by German firm Rockstone Real Estate in partnership with Ethiopian Investment Holdings (EIH), will house the ESX and other financial institutions.
Construction faces hurdles due to Ethiopia’s foreign currency shortages, as many materials must be imported. The country’s economy grew by 10.2 percent in the 2025/26 fiscal year, according to Prime Minister Abiy Ahmed. However, nearly 40 percent of Ethiopia’s 130 million people still live on less than three dollars a day. Key sectors like banking, telecommunications, and energy remain under tight state control. This limits the number of companies available for public trading, slowing the ESX’s expansion.
The ESX’s success depends on attracting more listings and overcoming economic challenges. The planned financial hub could boost its growth, but foreign currency constraints and state dominance in major industries may delay progress. For now, the exchange remains quiet, with only a handful of companies trading.
