Ethiopia Sees 250 Billion Birr in Listing Interest as Capital Market Gains Traction

Mintesinot Niggusie

The Ethiopian Capital Market Authority says investor participation has expanded sharply in the early phase of the country’s securities market, with the number of investment accounts rising from about 200 to 8,000. Alongside the increase in participation, companies have shown growing interest in listing. Firms seeking entry into the market have declared a combined capital base exceeding 250 billion birr, based on their existing paid-up capital.

Officials indicate that this figure could increase significantly once market-based valuations are applied, with estimates ranging between 500 billion birr and 600 billion birr. Trading activity has also begun to emerge. Transactions in the secondary market have reached 14 million birr, while more than 700 million birr worth of treasury bills have been exchanged through investment banks and brokers for the first time.

Hana Tehelku, director-general of the authority, said companies representing over 250 billion birr in capital have submitted formal requests to participate in recent months, noting that progress has been recorded since the market became operational. Liquidity within the financial system remains substantial. Interbank transactions have reached 2.5 trillion birr, providing a base for further capital market development.

The authority is also working to establish regional linkages beyond domestic investors. It has initiated cooperation with Nigeria’s Dangote Group on a potential pan-African listing initiative in collaboration with Ethiopia’s securities exchange, while Ethiopian delegations have engaged with market institutions in Nigeria and other countries to exchange experience.

Improving financial literacy remains a key priority, with efforts focused on increasing public awareness of investment opportunities and associated risks. Officials expect that broader participation will contribute to economic growth by directing capital into productive sectors.