Ethiopia’s securities exchange is slated to begin operations in October, according to the chief executive, as reported by state-affiliated media on Thursday. The establishment of the bourse is a key component of Prime Minister Abiy Ahmed’s broader strategy to liberalize the country’s economy, which has been heavily state-controlled, and attract private investment.
The CEO of the bourse, Tilahun Kassaul, confirmed to Fana Broadcasting that all necessary human resources and technological infrastructure will be ready by October.
In February, Abiy announced that the government was considering the sale of 10% of state-owned Ethio Telecom through the stock exchange. Ethio Telecom has historically held a monopoly until 2022 when a consortium led by Kenya’s Safaricom won the country’s first private telecoms license and began operations.
Ethiopia’s economy, long hindered by its command economy structure, has seen significant changes since Abiy’s administration began pushing for more private sector involvement and economic reforms in 2018. These reforms are considered more ambitious than previous attempts at opening up the economy.
In late July, Ethiopia floated its currency in preparation for securing International Monetary Fund (IMF) support, a crucial step for the country’s long-delayed debt restructuring efforts.
