Addis Ababa, May 23, 2022: Ethiopian financial markets have been boosted by a series of announcements and commitments from Financial Sector Deepening (FSD) Africa, a specialized development agency working to strengthen financial markets in sub-Saharan Africa.
The launch of FSD Ethiopia and partnerships with Ethiopia Investments Holding reinforce efforts to deliver beneficial financial development and outcomes for a stronger and more resilient national economy.
The announcements were made as part of a week-long visit led by senior leaders from the UK-Aid-funded agency in conjunction with partners.
These include the Ethiopian Ministry of Finance, Ethiopian Investments Holding, the National Bank of Ethiopia and the Principles for Sustainable Insurance Initiative (PSI) of the United Nations Environment Programme.
From progress made in establishing a securities exchange to the launch of FSD Ethiopia and solutions to help the country’s insurance sector respond to climate change, the initiatives will enhance the strength and health of Ethiopia’s financial markets, laying the foundations for a stronger and more resilient national economy.
The announcements included:
- Establishment of the Ethiopian Stock Exchange: The Ethiopian Ministry of Finance, Ethiopian Investment Holdings and FSD Africa have signed a cooperation agreement to establish the Ethiopian Securities Exchange (ESX).
- Once established, the ESX will become the 30th exchange on the continent. At least 50 companies, including banks and insurance companies, are expected to register when the exchange launches.
- Investor Roundtable: FSD Africa’s investment arm, FSDAi, hosted an investment roundtable in Addis to showcase its work as a provider of early-stage venture capital and as a catalytic investor, seeking to generate models and innovative products that can bridge gaps in the African financial market.
- Launch of FSD Ethiopia: FSD Ethiopia, which will work to enable the development of the country’s financial sector. With funding from UKAID and the Bill and Melinda Gates Foundation, FSD Ethiopia will build on FSD Africa’s initial efforts to improve the country’s financial sector.
- Ethiopian insurers endorse the Nairobi Declaration on Sustainable Insurance: Insurance stakeholders in Ethiopia have given their support to the Nairobi Declaration on Sustainable Insurance. The Nairobi Declaration on Sustainable Insurance is a continental commitment by African insurance industry leaders to support the achievement of the SDGs. The Nairobi Declaration brings together local and international insurance companies to promote the achievement of the SDGs and facilitate their understanding of the commitment to support the achievement of the SDGs.
Comment of the visit:
Mark Napier, CEO of FSD Africa mentioned: “We are pleased to collaborate with the Ethiopian government in this landmark initiative that will accelerate the development of capital markets in Ethiopia.
Our assistance in establishing the Ethiopian Securities Exchange will leverage FSD Africa’s extensive expertise and experience in developing capital market infrastructure across Africa.
This support demonstrates our long-term commitment to a thriving, deep, liquid and efficient capital market. »
HE Ato Ahmed Shide, Minister, Ministry of Finance, said, “The establishment of a stock exchange, the first in the history of our nation, through such a public-private partnership will usher in a new era for the Ethiopian financial industry and economy.
Today’s cooperation agreement between the Ministry of Finance, EIH and FSD Africa is a first concrete step towards realizing our vision.
HE Mamo Mihretu, CEO, Ethiopian Investment Holdingssaid, “The Ethiopian Securities Exchange will provide issuers and investors with unique and unparalleled access to capital markets, promoting efficient capital allocation and utilization.
In support of Ethiopia’s ambitious economic development agenda, the exchange will ensure that much-needed capital is made available to businesses, entrepreneurs and young innovators across Ethiopia.
For the first time in our nation’s history, all Ethiopians will have access to long-term financing to build sustainable businesses, create much-needed jobs, and participate in the country’s economic prosperity.
Paul Walters, Director of Development, British Embassy, Addis Ababasaid: A strong, competitive and inclusive financial market is essential for economic development.
The UK is happy to be a supporter of this through FSD Ethiopia. FSD Ethiopia’s important work is expected to help create a financial system that brings inclusive economic growth, poverty reduction and improved livelihoods.
Dr. Yinager Dessie (PhD), Governor of the National Bank of Ethiopiasaid, “We welcome the establishment of FSD Ethiopia as a reliable development partner, and we look forward to working together to address our priority areas of financial inclusion, capital market development and institutional capacity development. “, did he declare.
Ermias Eshetu, CEO of FSD Ethiopia said, “FSD Ethiopia will be an important partner in supporting the Federal Government’s efforts to ensure that the country’s economic growth is inclusive and facilitates development goals.
With one of the fastest growing economies in the world, with the right support and initiatives, a stronger and more inclusive economy has the potential to lift millions of people out of poverty and generate growth and prosperity. long-term “,
Mr. Belay Tulu, Director, Insurance, National Bank of Ethiopia commented: “We recognize the role of a thriving insurance industry in supporting stable economic growth.
Through the initiatives announced today, I am confident that Ethiopia will be a regional leader in providing innovative insurance products and distribution channels, enabling broader insurance coverage across the country. »