Ethiopia opened its second Capital Market Summit at the capital, bringing together regional and international participants to review the country’s progress in establishing a functioning capital market and to outline priorities for its next stage of development.

The summit, organised by the Ethiopian Capital Market Authority, is held under the theme “From Foundation to Growth – Empowering People and Markets for an Inclusive Financial Future.” In her address, Hana Teklu, Director General of the authority, said the market is gaining traction despite pressures in service delivery. She noted that persistent gaps remain, but the efforts to close them are beginning to yield visible improvements. Hana added that, although Ethiopia’s capital market is still in its early phase, initial results highlight its potential to become a significant player at the continental level. She said the market is advancing in line with the country’s economic capacity and its long-term financial ambitions.

Eyob Tekalgn (PhD), Governor of the National Bank of Ethiopia, said the decision to open the capital market was driven partly by the need to create an environment where foreign banks, which have long expressed interest in Ethiopia, can participate in the domestic system. He added that introducing a capital market was also essential for improving governance and strengthening oversight across the banking sector.

The authority said more than 70 prospectuses are now under review as financial institutions and corporate issuers prepare to list. During a panel session, Deputy Director General Esayas Kassa (PhD) said the core components of the ecosystem, including the Ethiopian Securities Exchange and the Central Securities Depository, are fully established and ready to support market activity. He said the institutional framework, the technology, and the integration required for effective operation are now in place.

The prospectus review process is a necessary step for regulated listings, ensuring issuers meet disclosure and governance standards before offering shares to the public. Interbank money trades conducted through the exchange have exceeded 1.2 trillion birr in less than a year, showing early efficiency gains from operating through formal platforms.

Participation on the investor side, however, remains modest. Awareness and training initiatives, including the ESX Academy, have reached more than seventeen thousand people, though only a small number have opened trading accounts. Market operators say expanding the investor base remains one of the immediate priorities as the summit continues through December 4.