Ethiopia Securities Exchange targets 100 IPOs as listing date nears

Ethiopia Securities Exchange is gearing up for close to 100 initial public offerings worth over 1.6 billion Birr this year as the Stock Exchange starts trading. The ambitious forecast has generated immense excitement within the economy and among investors. Mered Fikireyohannes, CEO of Pragma Investment Advisory, shared insights on the growing anticipation and progress of the Ethiopian Securities Exchange. The recent Capital Market Summit attracted key stakeholders, regulators, and international developers, setting the tone for the future. The target is to have 100 companies listed on the exchange in the next five to ten years, with Ethiotelecom being one of the first companies to offer its securities to the public. Despite delays in launch, preparations such as establishing the central security depository are underway, ensuring a smooth commencement. Ethiopia's economic landscape is also witnessing significant transformations, with the International Monetary Fund projecting a growth rate of 8.4%. A comprehensive macroeconomic reform plan has been set in motion to stabilize the currency and bolster forex reserves. Over the past 108 days, the country's foreign currency reserves have surged, signaling positive momentum and economic resilience. The recent liberalization efforts, coupled with currency adjustments, have sparked interest among forex traders. Ethiopia's strategic steps to foster a conducive environment for foreign direct investment are being closely monitored. The central bank's decision to allow exporters to retain their foreign currency earnings without time restrictions underscores the government's commitment to economic advancement. Moreover, the introduction of QR code payments by the Bank of Ethiopia signifies a leap towards digitalization and efficiency in the payments ecosystem. Standardizing QR codes for businesses and mandating their use on invoices streamlines transactions and enhances tax collection processes. This move reflects Ethiopia's progressive approach to digital transformation and revenue optimization. In conclusion, Ethiopia's journey towards market expansion, currency stability, and digital innovation is propelling the nation into a new era of economic development. With the Ethiopia Securities Exchange poised for a promising future and significant reforms in motion, the country is on a trajectory towards sustainable growth and investment opportunities.