Ethiopia is preparing to reopen its stock exchange after it was shut down 50 years ago. This move aims to attract both local and international investors, signaling a step forward for the country’s economy.
Economic Challenges in Recent Years: In 2023, Ethiopia faced major economic difficulties, with inflation surpassing 30%. However, by 2024, inflation had stabilized at 23.95%, despite ongoing conflicts with the Amhara militia group.

Now, to strengthen its economy, the Ethiopian government is launching a stock market with the first offering being the sale of shares in Ethio Telecom, the state-owned telecommunications company. The goal is to raise 30 billion birr (approximately $234 million) through this initial public offering (IPO).
Tilahun Kassahun, CEO of the Ethiopian Securities Exchange, plans to list up to 50 companies on the stock market over the next five years. Some of these companies may join without going through an IPO, using a process called “listing by introduction.”
GDP Trends Over the Years: Ethiopia’s GDP has been unstable over the past decade. It peaked at 10.4% in 2014, then dropped to 8% in 2015, largely due to rising food prices. GDP hit its lowest point of 6.1% in 2019 amid civil unrest. However, from 2019 to 2024, the economy has been recovering, with GDP expected to rise to 8% by 2024.
This trend and new development has sparked variety of comments and thoughts from different industry experts.
James Johnstone, an expert on emerging markets, believes reopening the stock market is crucial for Ethiopia’s economic growth and political transition. He highlighted the lack of international investment in rapidly growing economies like Ethiopia and sees potential opportunities for investors.
He said, “The opening of a domestic stock exchange is a key part of the economic and political transition of a frontier market.” Mark Bohlund, a credit analyst, on his end expressed doubts about the government’s ability to maintain political stability and governance. He noted that ongoing conflicts might scare away foreign investors, who prefer stable environments.
In his words, “It is hard to see how the current government will be able to reestablish a centralization of political power and effective governance.”
CEO Tilahun Kassahun also gave more thoughts. He pointed out two major challenges for Ethiopia’s stock market: – Unstable Currency Values: Fluctuating exchange rates make it hard for businesses to plan and operate. – High Inflation: Rising prices make the economic environment unpredictable, discouraging investors from participating in the market.
What You Should Know
Ethiopia once had a stock market, but it was dissolved in 1974 after the overthrow of Emperor Haile Selassie. Reopening the exchange now marks a significant milestone in rebuilding the country’s financial system.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.