AfDB commits $400,000 to boost Ethiopia’s capital market disclosure and product innovation

The African Development Bank (AfDB) has signed a $400,000 grant agreement with the Ethiopian Capital Market Authority (ECMA) to establish a public disclosure platform and introduce new financial products at the Ethiopian Securities Exchange.

The support, provided through the Bank’s Capital Markets Development Trust Fund (CMDTF), will strengthen the Ethiopia Capital Market Development Support Project, which builds on AfDB’s earlier assistance in drafting the country’s capital market legal framework in 2021.

The planned disclosure platform will enable timely and transparent release of company information to investors, shareholders and the public, aimed at improving decision-making and ensuring fair price discovery.

Under the initiative, ECMA and the Ethiopian Securities Exchange will also roll out new instruments including exchange traded funds (ETFs), sukuks, and green bonds to diversify investment opportunities and attract both domestic and international capital.

Hana Tehelku, Director General of ECMA, described the grant as a milestone for Ethiopia’s financial sector. “The support for infrastructure development and product diversification will be instrumental in attracting investment, propelling economic growth, and expanding access to long-term financing,” she said.

Akane Zoukpo Sanankoua, AfDB’s Manager for Capital Markets Development, said the project aligns with the Bank’s goal of building resilient African capital markets to mobilise long-term resources.

The CMDTF, a multi-donor fund backed by Luxembourg, the Netherlands and Sweden, was set up in 2019 and currently manages a $6 million portfolio across 16 African countries. The Ethiopian project marks the Trust Fund’s first intervention outside West Africa.