Ethiopia launched a stock exchange this week. Important step, according to the authorities, in the process of opening the economy of this country to private investment, as desired by Prime Minister Abiy Ahmed.
Ethiopian Security Exchange (ESX) Managing Director Tilahun Kassahun expects 90 companies to join over the next ten years. But to date, only Wegagen Bank has been listed.
State-owned telecommunications company Ethio Telecom is preparing to make its debut.
Ethiopia is the second most populous nation in Africa with around 130 million inhabitants.
The country once held a securities exchange in the 1960s and 1970s, but it was closed by the socialist military government that overthrew the monarchy in 1974.
It has recorded some of the fastest economic growth rates on the continent for years.
Abiy's steps to liberalize the economy since coming to power in 2018 have attracted interest from foreign companies, including Kenyan company Safaricom (SCOM.NR), opens new tab, which obtained the first private telecommunications license of the country in 2021.
However, progress has been slowed by armed conflicts in several parts of the country, including a civil war in 2020-2022 in the northern region of Tigray, which left hundreds of thousands dead.
Some investors also questioned the government's real commitment to liberalization.
