Ethiopia is in the process of establishing its own stock exchange

The new bourse would be known as the Ethiopian Securities Exchange, Business Insider Africa gathered.

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In a press statement that was issued via Twitter, EIH explained that the new stock exchange would play a pivotal role in facilitating investments in the country. It would also avail Ethiopian companies and entrepreneurs access to long-term financing options for their businesses.

Upon launch, nothing less than 50 Ethiopian companies are expected to list their shares on the bourse. Some of these companies would include state-owned corporations such as Ethio Telecom and Ethiopian Airways.

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"ESX will democratize corporate ownership of the nation's largest and most influential companies, empowering Ethiopians with a direct stake in their country's economic infrastructure... EIH will serve as the wind underneath ESX’s wings by floating minority shares of selected companies under its management," said a part of the statement.

The bourse is also expected to be very instrumental to the Ethiopian Government in the following ways:

First is with regards to raising capital to finance budget deficits. And this could be done through the issuance of long-term bonds.
Secondly, the bourse would facilitate Ethiopia's privatisation bid and give more Ethiopians the opportunity to own stakes of some of the newly privatised state-owned entities.

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As you should know, there are currently some 29 stock exchanges scattered across the African continent. The establishment of the Ethiopian Securities Exchange will bring the total number of bourses to 30.

This would be the first bourse in the Horn of Africa. And FSD Africa will take care of the technical support, legal services and the costs associated with getting the exchange started.

No mention was made about when the bourse would actually begin operations.

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