From Green Goals to Stock Pitches: Everything from Ethiopia’s Second Capital Market Summit

By Mintesinot Nigussie
Published on 12/06/25

Addis Ababa hosted the Second Ethiopian Capital Market Summit from December 2 to 4, bringing together regulators, investors, and market participants to assess progress and outline the next phase of the country’s capital market development. Under the theme “From Foundations to Growth: Empowering People and Markets for an Inclusive Financial Future,” the summit highlighted Ethiopia’s steady efforts to build a functional, inclusive, and increasingly accessible market. Among the announcements, ECMA revealed that more than seventy companies have submitted prospectuses for review, the legal framework for foreign investor participation has been finalised, and the National Bank of Ethiopia reported mobilizing over 125 billion birr through recent treasury bill auctions. The Ethiopian Investment Holdings also announced plans to launch a Jump Start project aimed at incubating startups through its portfolio companies. Here is a full look at how the three-day event unfolded.

The first day focused on establishing institutional and regulatory foundations. In the panel Breaking New Ground – Ethiopia’s Capital Market Evolution, Isaias Kasa (PhD), Deputy Director General at ECMA, detailed the creation of key ecosystem components, including regulatory frameworks, professional service providers, and technological platforms. Around seventy prospectuses are currently under review, supported by awareness campaigns targeting both investors and issuers. Tilahun Kasahun (PhD), chief executive of Ethiopian Securities Exchange, outlined a near-term listing pipeline, which includes four financial institutions and aims for at least nine listings by 2026. He noted that the interbank money market has traded over 1.2 trillion birr, while liquidity development for corporate bonds and treasury bills remains a priority.

Mistere Urge, CSD Director at the National Bank, highlighted that dematerialisation of securities is underway, with approximately 60,000 investors registered. The CSD platform now supports electronic trading of private and government securities.

Day two addressed market infrastructure, investment access, and innovation. The panel Public Market: Lessons from Regional Experiences examined market readiness and governance requirements, drawing comparisons with Kenya and Nigeria. Leonard Mathu, Managing Director at AIS Capital Advisors that companies preparing to go public should focus on strong governance, including a clear organisational structure, separation of ownership and management, and regular reporting backed by independent audits. Predictable earnings, stable cash flows, and established products are essential for attracting both equity and debt investors. He also emphasised the importance of a recognisable brand and public goodwill, particularly in retail-driven markets like Ethiopia, and noted that regulatory clarity adds investor confidence. Companies should prioritise governance, financial reliability, and crafting a compelling market story to effectively engage investors.

Solomon Bekele from ECMA said ECMA has spent three years preparing the market for public offerings, overcoming challenges like few licensed advisors, limited qualified staff, and issuer resistance. The authority required full registration and disclosure from all issuers to ensure investors can make informed decisions. This process has generated a surge of applications and marks the completion of an initial chapter in Ethiopia’s capital market development.

Ms. Adama Babadoku of SEC Nigeria described investor protection measures such as corporate governance disclosures, auditor confirmation, financial statement verification, and investment-grade bond ratings. Peter Rashadi of United Capital discussed operational considerations for companies transitioning to public status, including ongoing reporting, regulatory compliance, and investor engagement. Discussions also covered innovations including mobile trading, green bonds, Shari’ah-compliant finance, private placements, crowdfunding, venture capital, collective investment schemes, and ESG practices.

The final day focused on inclusion, technology, and emerging talent. Panels highlighted women leaders’ roles in the market and guidance for young professionals and first-time investors. The Trust Triangle panel examined the roles of auditors, lawyers, and accountants in maintaining market integrity, while sessions on AI in FinTech explored applications in service delivery and transparency. Ethiopia’s first Student Stock Pitch Competition concluded the summit, with six teams from four universities presenting research and market insights. Tibeb Capital won for demonstrating teamwork and market understanding. ECMA closed the summit by emphasising ongoing collaboration, education, and participation to strengthen the capital market ecosystem.

The three-day event illustrated Ethiopia’s progress in developing market infrastructure, expanding investor education, and supporting technology-driven trading platforms. With regulatory frameworks in place, securities dematerialisation advancing, and a growing listing pipeline, the country continues to implement measures aimed at facilitating transparent and inclusive capital market growth.

Key Announcements from the Summit

The summit’s closing ceremony featured the inaugural recognition of winners and judges of Ethiopia’s first national Stock Pitch Competition. ECMA reported that more than seventy companies have submitted prospectuses, which are currently under review as part of efforts to build a pipeline of publicly listed firms.

In a significant regulatory development, the Ethiopian Capital Market Authority announced that the legal and regulatory framework enabling foreign investor participation in the country’s capital market has been finalised and will be published shortly.

On market activity, Eyob Tekalign, governor of the National Bank of Ethiopia, said that over 125 billion birr has been mobilized through the last four rounds of government treasury bill auctions, attracting both individual and institutional investors via the Ethiopian Securities Exchange. He noted that since last year, the Ministry of Finance has ceased monetary financing from the central bank to address the fiscal deficit.

The Ethiopian Investment Holdings also outlined plans to launch a Jump Start project, where its 41 portfolio companies will incubate startups. Brook Taye, CEO of the government’s investment arm overseeing state-owned enterprises including Ethio telecom and Ethiopian Airlines, described the initiative as a step to foster innovation and expand investment opportunities within Ethiopia’s capital market ecosystem.