The African Development Bank Group has awarded the Ethiopian Capital Market Authority (ECMA) a $400,000 grant to support the expansion of Ethiopia’s capital market and the introduction of new financial instruments at the Ethiopian Securities Exchange (ESX).

The funding, provided through the Capital Markets Development Trust Fund (CMDTF), is part of the Ethiopia Capital Market Development Support Project. It follows the Bank Group’s earlier assistance, including the establishment of Ethiopia’s capital market legal framework in 2021.

The project will establish a public disclosure platform to provide investors, shareholders, and market participants with timely and accurate company information, enhancing transparency and supporting fair price discovery.

Alongside infrastructure improvements, the initiative will enable the introduction of diversified financial products, including Exchange Traded Funds, sukuks (Sharia-compliant securities), and green bonds, broadening investment options and attracting domestic and international capital.

Hana Tehelku, ECMA Director General, signed the agreement in Addis Ababa. She said the project would “propel Ethiopia’s economic growth and expand access to long-term financing for public and private sector actors.”

Akane Zoukpo Sanankoua, African Development Bank Group Manager for Capital Markets Development, said the project “reinforces the Bank’s commitment to building resilient capital markets capable of mobilizing long-term domestic and international resources.”

Established in 2019, the CMDTF manages a portfolio of $6 million across sixteen African countries. The Ethiopia Capital Market Development Support Project is the first initiative supported outside West Africa, highlighting the fund’s expanding regional engagement.