The African Development Bank (AfDB) has approved a $400,000 (about 53,655,520 birr) technical assistance grant to support Ethiopia’s efforts to build a modern capital market. The funding comes from the AfDB-managed Capital Markets Development Trust Fund (CMDTF), a multi-donor fund supported by contributors including the Netherlands, Luxembourg, and Sweden. 

The grant is directed toward the Ethiopian Capital Market Authority (ECMA) and the Ethiopian Securities Exchange (ESX), with the goal of helping them implement foundational systems for disclosure, reporting, and oversight. The funds will help ECMA establish a public disclosure platform to enable timely and accurate dissemination of company information, enhancing transparency and market efficiency.

For the ESX, the project will also help broaden the range of financial instruments traded in Ethiopia by supporting the introduction of exchange-traded funds (ETFs), green bonds, and sukuk—Islamic financial instruments, while laying the groundwork for improved investor access and market credibility.

Hana Tehelku, Director General of ECMA, expressed genuine optimism about the partnership and said the grant is more than just funding; it is a shared vision coming to life. She explained that this support will help build the necessary infrastructure at ECMA and boost the Ethiopian Securities Exchange’s ability to grow and offer new products. “This is not just about numbers,” she said, “it is about opening doors for both local and international investors, driving Ethiopia’s economy forward, and making long-term financing more accessible to those who need it most.”

On the same note, Tilahun Kassahun, CEO of the ESX, welcomed the support with enthusiasm. Reflecting on the solid groundwork already laid for Ethiopia’s capital markets, he said that the timing could not be better. “We have built the foundation, and now it is time to take meaningful steps that truly benefit companies and investors alike,” Kassahun noted, underscoring the need for tangible results from this collaboration.