After 50 years without a stock market, Africa’s second-most populous nation adds another major bank

For more than five decades, Ethiopia stood out as one of the world’s largest economies without a functioning stock exchange, leaving investors with virtually no regulated way to buy stakes in the country’s biggest companies. Today, that transformation is gathering pace as another major lender joins the country’s fledgling securities market.

• Abay Bank has become the fifth company to list on Ethiopia’s Securities Exchange, marking another milestone in the country’s financial reforms.
• The listing strengthens market liquidity and transparency without raising new capital.
• More banks are expected to join as Ethiopia expands its young stock market.
• The ESX aims to grow to 50 listed companies by 2030, boosting long-term investment.

Abay Bank S.C. has listed its shares on the Ethiopian Securities Exchange (ESX) Main Market under the ticker ABAYB, becoming the fifth company admitted to Africa’s youngest stock exchange and the fourth private commercial bank to list since trading began in January 2025.

The latest listing marks another milestone in Ethiopia’s ambitious financial-sector reforms, which are gradually opening one of Africa’s largest frontier economies to long-term private investment after decades of state dominance and a banking system almost entirely dependent on deposits for funding.

Unlike a traditional initial public offering (IPO), Abay Bank joined the exchange through a listing by introduction, meaning existing shareholders can trade their shares on the regulated market without the bank issuing new equity or raising fresh capital.

While no new funds are being raised immediately, the listing improves price discovery, corporate transparency and market liquidity while laying the foundation for future capital raising.

The addition also moves the Ethiopian Securities Exchange closer to its target of nine listed companies before the end of Ethiopia’s 2025/26 fiscal year on July 7, highlighting the steady pace at which the country is building a capital market after operating for more than half a century without an organised securities exchange.

Building one of Africa’s newest capital markets

The Ethiopian Securities Exchange was launched in January 2025, ending more than 50 years without a formal stock market after the former Addis Ababa Stock Exchange ceased operations decades ago.

Its creation forms part of Prime Minister Abiy Ahmed’s wider economic liberalisation programme, which includes foreign exchange reforms, gradual opening of strategic sectors to private investment, telecommunications liberalisation and broader efforts supported by the International Monetary Fund and the World Bank to modernise Africa’s second-most populous economy.

Since its launch, the exchange has steadily attracted some of Ethiopia’s biggest financial institutions.

Wegagen Bank and Gadaa Bank became the first companies to list on the exchange, followed by Awash Bank, Ethiopia’s largest private commercial bank.

In May 2026, state-owned Ethio Telecom became the first non-financial company to join the market after a landmark public share offer that attracted more than 47,000 investors, signalling growing retail participation in Ethiopia’s emerging equity market.

Abay Bank now joins that expanding roster, reinforcing the banking sector’s dominance during the exchange’s formative years.

Several more lenders are expected to follow. Dashen Bank and Bank of Abyssinia have already completed securities registration with the Ethiopian Capital Market Authority (ECMA), positioning them among the next likely entrants. Anbesa Bank and Amhara Bank are also reported to be at advanced stages of regulatory preparation.

Why the listing matters

For decades, Ethiopian companies relied almost exclusively on retained earnings and bank loans to finance expansion because no organised equity market existed.

Each new listing deepens the country’s capital market by increasing the pool of tradable securities, improving liquidity, strengthening corporate governance and creating greater transparency for investors.

Over time, a larger exchange could provide businesses with an alternative source of long-term financing while giving both domestic and international investors regulated access to one of Africa’s largest untapped markets.

ESX Chief Executive Officer Tilahun Kassahun said Abay Bank’s admission represents another step toward building a transparent, efficient and well-regulated securities market capable of supporting Ethiopia’s economic transformation.

The momentum follows Ethio Telecom’s landmark share sale, Ethiopia’s first public offering in decades, which raised 3.2 billion birr from 47,377 investors. Although the offer fell short of its original fundraising target, it marked a historic shift towards broader public participation in the country’s economy.

Long-term ambition

The Ethiopian Securities Exchange has set an ambitious goal of expanding from five listed companies today to 50 listed firms by 2030.

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If achieved, the target would fundamentally reshape how businesses raise capital in one of Africa’s fastest-growing economies, reduce dependence on traditional bank lending and position Ethiopia as one of the continent’s newest destinations for institutional and long-term investment.

With Abay Bank now on the market and more financial institutions preparing to list, Ethiopia’s once-nonexistent stock exchange is rapidly evolving into a central pillar of the country’s financial modernisation and a key gateway for investors seeking exposure to one of Africa’s largest frontier markets.