Ethiopia banks on new stock market to lure investments, revive economy

The head of Ethiopia’s new stock exchange said the bourse plans to diversify its offerings to avoid the challenge of low trading volumes seen in other African countries as it vies to attract more private investment.

Ethiopia this month launched its first securities exchange in five decades to revive an economy grappling with double-digit inflation, conflict, and growing external debt. So far only one company, Wegagen Bank, a mid-sized lender based in Addis Ababa, has listed. The state-owned telecom Ethio Telecom, which is preparing for an initial public offering, is expected to join suit in coming months.


The Ethiopian stock exchange is expected to support local companies raise capital as part of the government’s ambitious plans to upend the economy.


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