What is the Ethiopian Securities Exchange?

1. What exactly is a securities exchange?

A securities exchange is an organized marketplace where buyers and sellers meet to trade financial instruments — primarily stocks (shares of company ownership) and bonds (loans to companies or governments). Think of it as a central market with clear rules, independent oversight, and a record of every transaction.

Without an exchange, trading is mostly private and hard to trust. You cannot easily verify fair prices or confirm settlement. The exchange fixes that by centralizing price discovery and settlement.

Quick analogy

A securities exchange is to stocks what the Merkato is to physical goods — but with a referee, electronic scales, and a receipt that is legally binding and stored forever.

2. The birth of the ESX

For most of its history, Ethiopia had no formal stock exchange. Companies raised money through private placements, bank loans, or informal share sales, which left ordinary citizens with limited access.

The Ethiopian Securities Exchange (ESX) was established under the Capital Markets Proclamation (No. 1248/2021) and launched in 2024. It is owned jointly by the Ethiopian government and private shareholders, regulated by the Ethiopian Capital Market Authority (ECMA), and operates from Addis Ababa.

Founded

2024

Regulator

ECMA

Market type

Equities + Fixed Income

3. What can you trade on the ESX?

The ESX launched with a focus on the instruments Ethiopian companies and the government actually use to raise capital. Here is what is available and what is coming:

Instrument	Status	Description
Equities (stocks)	Live	Shares of listed Ethiopian companies — you become a part-owner.
Government bonds	Live	Long-term debt issued by the Ethiopian government.
Treasury bills (T-bills)	Live	Short-term government paper with 28, 91, 182 and 364-day maturities.
Corporate bonds	Live	Debt issued by private Ethiopian companies.
ETFs	Coming soon	Baskets of securities tracking an index.
Derivatives	Future	Futures and options for hedging. Not yet launched.

4. Who regulates the ESX?

The Ethiopian Capital Market Authority (ECMA) is the independent government body responsible for licensing, supervising, and enforcing rules across Ethiopia's capital markets. ECMA licenses:

The exchange itself (ESX)
Brokers and investment advisers (like Kashup)
Fund managers and custodians
Securities issuers (companies listing on the exchange)

Kashup is licensed by ECMA as a registered broker, which means your trades are routed through officially authorized channels and your account activity is subject to regulatory oversight.

5. How the ESX works — order flow explained

When you tap "Buy" inside Kashup, here is what happens behind the scenes:

You place an order

You enter the stock, quantity, and price type (market or limit) in the Kashup app.

Broker review

Kashup sends eligible order requests through licensed brokers, trading members, and approved market systems where applicable.

Order matching

The ESX's central order book matches your buy order with a willing seller at the best available price.

Trade confirmation

You receive an instant notification and the trade appears in your portfolio.

CSD settlement (T+2)

The Central Securities Depository (CSD) settles the trade within 2 business days — transferring shares and cash between both parties' accounts.

6. Why the ESX matters for ordinary Ethiopians

Before the ESX, if an Ethiopian wanted to invest in Safaricom Ethiopia or Commercial Bank of Ethiopia (CBE) equity, there was no formal mechanism. Share sales happened privately, prices were opaque, and disputes had no regulatory resolution.

Transparent pricing

Every trade is publicly visible. The ESX publishes real-time price data so you always know what a stock is worth today.

Protection from fraud

ECMA licensing and CSD custody means your shares are held securely in your name — not by a middleman who could disappear.

Wealth building at any income

With fractional and goal-based investing through Kashup, you can start with as little as ETB 100.

Diaspora access

Ethiopians abroad can now invest in homeland companies through the Kashup Diaspora module with cross-border compliance built in.

7. How to access the ESX through Kashup

You do not need to contact a broker directly or walk into a bank. Kashup handles your digital KYC, CSD account opening, and live order routing through a single app.

Download Kashup and create your account

Complete Wardya digital identity verification (takes under 5 minutes)

Fund your Kashup wallet via bank transfer, Telebirr, or mobile money

Browse the Markets tab — search any listed stock or bond

Place your first trade

Get early access See how Kashup works

8. Key terms glossary

Equity (stock/share)

A unit of ownership in a company. Owning shares entitles you to dividends and a vote at shareholder meetings.

Bond

A debt instrument. When you buy a bond, you lend money to the issuer (government or company) and receive interest payments.

Treasury Bill (T-Bill)

A short-term government bond, typically maturing in under one year. Considered the lowest-risk investment in Ethiopia.

CSD

Central Securities Depository — the entity that holds your securities in a digital register on your behalf.

ECMA

Ethiopian Capital Market Authority — the government regulator overseeing all capital market participants.

Order book

An electronic list of all open buy and sell orders on the exchange at any moment.

T+2 settlement

Trades settle 2 business days after execution — the time it takes for shares and cash to transfer between accounts.

Market order

An instruction to buy or sell immediately at the best available current price.

Limit order

An instruction to buy or sell only at a specific price or better — your order waits until a match is found.