- African Development Bank provides $400,000 to develop disclosure platform
- Ethiopia’s nascent stock exchange aims to attract foreign capital
ADDIS ABABA, ETHIOPIA – Ethiopia has received a $400,000 grant from the African Development Bank (AfDB) to accelerate the rollout of its fledgling stock market and to fund a public disclosure platform.
It will also fund new financial instruments designed to deepen capital markets and attract global investors.
The funding agreement, signed between the AfDB and the Ethiopian Capital Market Authority (ECMA), will finance the Ethiopia Capital Market Development Support Project under the Bank’s Capital Markets Development Trust Fund (CMDTF).
The initiative builds on earlier AfDB support that helped establish the legal foundations for the Ethiopian Securities Exchange (ESX) in 2021.
“The new disclosure platform will ensure listed companies provide timely and accurate information to shareholders and investors,” ECMA said in a statement. “This, in turn, is expected to improve decision-making, transparency, and fair price discovery—cornerstones for any functioning stock market.”
Expanding products and investor base
The project will introduce financial products such as exchange-traded funds (ETFs), sukuks (Islamic-compliant bonds) and green bonds. These are expected to widen financing options for companies and offer investors new asset classes in a market that is still in its infancy.
“We are proud to collaborate with the African Development Bank’s Capital Markets Development Trust Fund on this vital project,” said Hana Tehelku, Director General of ECMA.
“This grant reflects our shared vision for a vibrant and resilient Ethiopian capital market. The support for ECMA’s infrastructure development and ESX’s capacity building will be instrumental in attracting both domestic and international investment, propelling Ethiopia’s economic growth, and expanding access to long-term financing,” Tehelku added.
Representing the AfDB, Akane Zoukpo Sanankoua, Manager for Capital Markets Development, said the initiative had a wider continental significance.
“The Ethiopia Capital Market Development Support Project’s broad objective is to contribute to the expansion of Ethiopia’s financial sector and economy by improving access to long-term financing,” she said. “It reinforces the Bank’s commitment to building resilient capital markets that can mobilise resources while unlocking new opportunities.”
Regional momentum
The CMDTF, established in 2019, is a multi-donor trust fund supported by Luxembourg, the Netherlands and Sweden, and managed by the AfDB. With a $6 million portfolio spanning 16 African countries, the fund has until now focused largely on West Africa. Ethiopia is the first beneficiary outside the region, a sign of its growing geographical reach.
“This grant positions Ethiopia to accelerate its market rollout, but success will depend on how quickly regulatory systems and investor education keep pace,” said a source close to ECMA, who requested anonymity.
“With the ESX, stakeholders see the grant as a step toward unlocking long-term finance, drawing foreign capital, and advancing Ethiopia’s broader green and inclusive growth agenda,” the source added.
