ESX Aims to Accelerate Listings as Regulatory Preparations Intensify

The Ethiopian Securities Exchange (ESX) is targeting the listing of nine companies before the end of the current Ethiopian calendar year in September, as efforts intensify to operationalize the country’s nascent capital market.

Speaking to The Reporter, Tilahun Kassahun, the Chief Executive Officer of the Ethiopian Securities Exchange (ESX), stated that the ESX is actively working to achieve, and possibly exceed, its listing goal for the current year. Tilahun, who took on the CEO position in November 2023, also mentioned that several companies are currently undergoing different phases of regulatory review.

Despite launching nearly a year ago, the Ethiopian Securities Exchange has yet to commence active trading. Progress so far has been gradual, with four companies formally initiating the listing process. These include state-owned Ethio Telecom and private commercial banks Wegagen, Gadaa, and Dashen.

Ethio Telecom’s initial public offering, which attracted lower-than-expected participation earlier this year, is expected to begin trading on the Ethiopian Securities Exchange once outstanding procedural requirements are completed. Among private issuers, Dashen Bank took a significant step forward this week after the Ethiopian Capital Market Authority (ECMA) approved its registration documents and prospectus, enabling the formal registration of more than 14.3 million existing shares.

According to information shared with The Reporter, Dashen Bank plans to offer 2.2 million new shares to its existing shareholders initially. Any unsubscribed shares may later be offered to qualified investors and, potentially, the wider public, subject to regulatory approval.

Tilahun told The Reporter that ESX has so far received applications from four companies, while additional state-owned enterprises under Ethiopian Investment Holdings are expected to follow. These include the Ethiopian Shipping and Logistics Services Enterprise and the Ethiopian Insurance Corporation, which have previously been identified as potential listing candidates.

Companies that have not yet met listing requirements will continue to trade through the Over-the-Counter (OTC) market until they secure registration with ECMA. Tilahun explained to The Reporter that draft prospectuses are jointly reviewed by ESX and the regulator before approvals in principle are granted.

He also noted that listing timelines depend largely on whether a company intends to raise new capital. Firms opting for direct listing can move more quickly, while those planning public offerings must undergo additional regulatory scrutiny.

Dashen Bank’s approach reflects this distinction. While the bank has already secured approval for listing, its public capital-raising exercise is scheduled for February 2026, allowing listing and fundraising to proceed as separate phases within Ethiopia’s evolving capital market framework.

At the same time, regulators are enforcing mandatory dematerialization of securities, replacing paper-based share certificates with electronic records held by the Central Securities Depository (CSD). Tilahun told The Reporter that Gadaa and Wegagen banks have already completed the process.

He stressed that dematerialization alone does not guarantee trading eligibility. Securities must also be registered with the Ethiopian Capital Market Authority (ECMA) to be listed and traded. Companies that fail to complete both requirements by the November 2025 deadline will be barred from trading, limiting shareholders’ ability to transfer shares, receive dividends, or exercise ownership rights.