Ethiopia Secures $400,000 AfDB Grant to Strengthen Capital Markets
The African Development Bank Group (AfDB) and the Ethiopian Capital Market Authority (ECMA) have signed a US$400,000 grant agreement to boost Ethiopia’s capital market infrastructure and product offerings.
The funding, provided through the Capital Markets Development Trust Fund (CMDTF), will support the Ethiopia Capital Market Development Support Project. It will establish a public disclosure platform to ensure timely and transparent dissemination of company information, strengthening investor confidence and fair price discovery.
The initiative will also introduce new financial products such as Exchange Traded Funds (ETFs), sukuks (Islamic-compliant bonds), and green bonds, marking a significant diversification of Ethiopia’s capital market.
Speaking at the signing ceremony in Addis Ababa, Ms Hana Tehelku, Director General of ECMA, said the project would be vital for attracting domestic and international investment: “The support for ECMA’s infrastructure development and ESX’s capacity building and product diversification will be instrumental in propelling Ethiopia’s economic growth and expanding access to long-term financing.”
Mrs Akane Zoukpo Sanankoua, AfDB Manager for Capital Markets Development, reaffirmed the Bank’s commitment: “This project aims to improve access to long-term financing for both the public and private sectors while unlocking new financial opportunities.”
Also present was Mr Sebastian Beyenburg, First Secretary at the Embassy of Luxembourg, representing CMDTF donors, which include the Netherlands, Luxembourg and Sweden.
Since its establishment in 2019, the CMDTF has supported the development of African capital markets across 16 countries with an active portfolio of US$6 million. Ethiopia is the first country outside West Africa to benefit from the Trust Fund.
