On March 29, 2024, the Ethiopian Securities Exchange (ESX) concluded its share sales, signaling a significant milestone in the country’s capital market landscape. In this network, the Ethiopian Investment Holdings (EIH), representing the sovereign wealth fund, secured 25 percent of the shares, while the remaining 75 percent were allocated to private entities.
Announcing the achievement, ESX revealed that the raised capital surpassed initial expectations following the opening of the investment market to shareholders. Tilahun E. Kassahun, CEO of ESX, confirmed the successful completion of the share sales, highlighted by Amhara Bank emerging as the largest private shareholder on the Securities Exchange after purchasing substantial shares.
“We were entrusted with the task of securing 25% of the capital from the government, with the remainder sourced from the private sector. We have successfully met our capital requirements,” stated Kassahun.
ESX, established as per the capital market proclamation 1248/2021, is set to commence operations by the year’s end. Amhara Bank’s significant share acquisition positions it as a major stakeholder in the Ethiopian Securities Investment Market, with a substantial holding of 90.6 million birr.
Several prominent financial institutions, including Zemen, Siinqee, Awash, and Global Bank of Ethiopia, along with insurance companies like Zemen, United, and Lion Insurances, have also participated by acquiring shares.
Amhara Bank’s announcement places it as the sixth private bank to hold a significant share in the Ethiopian capital market, further enhancing the market’s depth and diversity. The stock market’s objective to sell subscription shares worth a billion birr upon its formation underscores the growing investor interest and confidence in Ethiopia’s burgeoning capital market.
The successful completion of ESX’s share sales marks a pivotal moment in Ethiopia’s economic landscape, heralding increased participation from both public and private sectors in driving financial growth and stability.
