Ethiopia to List More State Entities on New ESX

Ethiopia is listing more state entities on its Stock Exchange (ESX) due to be made fully operational later this year. Officials from the Ethiopian Investment Holdings (EIH) said this week that they have picked 6 public entities which would sell some of their shares on the new stock exchange.

The government earlier announced that it will list 10% of Ethio Telecom shares on ESX. It plans to sell shares of 5 other state entities too on the new bourse. However, it has not announced yet how much of these companies will be listed.

The companies that will sell some of their shares on ESX are:

• Ethiopian Sea Transport and Logistics Service Company (Abatload)
• Ethiopian Insurance Company
• Berhan and Salam Publishing Company
• Educational Production and Manufacturing Company
• Ethiopian Tourist Trade Company

Ethiopian government will reportedly maintain its 25% shares in ESX through five state owned companies. Ethiopian Investment Holdings (EIH) & four of its state-owned subsidiaries, Ethio Telecom, Ethiopian Shipping and Logistics Service Enterprise (ESLSE), Ethiopian Insurance Corporation (EIC), and Berhanena Selam Printing Enterprise, are the five corporations which pledged to contribute 25% of the over 900 million capital which ESX will have.

Ethiopia Securities Exchange is attracting foreign investment too. Last month Nigerian Stock Exchange announced to invest in ESX. “We are excited to announce our investment in the Ethiopian Stock Exchange, which represents a significant milestone in our expansion strategy,” Temi Popoola, group managing director and chief executive officer (CEO) of Nigerian Stock Exchange Group said.

Other notable foreign investors in Ethiopia stock exchange include Financial Sector Deepening Africa (FSD Africa), a non-profit financial institution backed by the UK government and focusing on sub-Saharan Africa. The Trade and Development Bank Group (TDB), the financial subsidiary of the Common Market for Eastern and Southern Africa (COMESA) trade bloc, is also a participant.

The bourse is likely to be made operational later this year. Last month, the Ethiopian Security Exchange ESX announced that it surpassed capital raise target for the establishment of the bourse. It announced to have raised $26.6 million while targeting $11.07 million.

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