Ethiopia launches stock exchange to spur private sector

Ethiopia has become the latest African country to launch its own stock exchange on January 10 to open-up its growing economy to private investors.

The launch is part of economic reforms to end the state control of the economy of the near 100-million-nation.

Dubbed, the Ethiopian Securities Exchange (ESX), the bourse is expected to provide a platform for local and international investors to invest in Ethiopian companies, thereby boosting the economy.

So far one company, Wegagen Bank, was listed on the Ethiopian Security Exchange (ESX), although ESX chief executive Tilahun Kassahun said he expected 90 companies to eventually join over the next 10 years, Reuters reported.

State-owned telecom Ethio Telecom, which is preparing for IPO, is also widely expected to list shares on the exchange, the agency said.