More than half a century without an official capital market has left Ethiopia short of the range of expertise needed to make a success of current plans, says Mered Fikireyohannes, CEO of Pragma Investment Advisory in Addis Ababa. The country had an informal stock market in the late 1950s, which became official in 1965. The socialist revolution of 1974-75 led to the nationalisation of private businesses and the end of the exchange. That era now seems to be closing, with the Ethiopian Securities Exchange (ESX) starting roadshows to raise capital in May. The exchange is offering ownership of up to 75% to local and foreign private-sector investors. The remaining 25% of shares will be held by Ethiopian Investment Holdings, its sovereign wealth fund. The ultimate objective of Ethiopia’s authorities is to have the bourse operating fully by 2024, and they also plan to have at least five state-owned enterprises listed soon after. The country is inviting local and foreign investors to take a stake in the Ethiopia Securities Exchange, or ESX.
Ethiopia’s Investment in Modernizing its Economy is Creating Ample Opportunities for Investors
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