The African Development Bank Group (AfDB) and the Ethiopian Capital Market Authority (ECMA) have signed a grant agreement for $400,000 to establish a public disclosure platform and introduce new financial products, including exchange-traded funds (ETFs) and green bonds, at the Ethiopian Securities Exchange. This grant, provided through the Capital Markets Development Trust Fund (CMDTF), supports the Ethiopia Capital Market Development Support Project and builds on AfDB’s previous assistance, including the creation of Ethiopia’s capital market legal framework in 2021.
The planned public disclosure platform will ensure timely and accurate dissemination of company information to investors, shareholders, and other market participants, enhancing decision-making and promoting fair price discovery. In addition, the product development component will diversify Ethiopia’s capital market offerings with instruments such as ETFs, sukuks (Sharia-compliant financial instruments), and green bonds, broadening investment opportunities for domestic and international investors.
Ms. Hana Tehelku, Director General of ECMA, emphasized the importance of the collaboration, noting that the grant will strengthen infrastructure, expand product offerings, attract investment, and support Ethiopia’s economic growth while improving access to long-term financing. AfDB’s Manager for Capital Markets Development, Mrs. Akane Zoukpo Sanankoua, highlighted that the project aims to expand Ethiopia’s financial sector by mobilizing domestic and international long-term resources and unlocking new financial opportunities.
The grant agreement signing was also attended by Mr. Sebastian Beyenburg from the Embassy of Luxembourg, representing CMDTF donors. The multi-donor trust fund, established in 2019, is funded by the Netherlands, Luxembourg, and Sweden to support the deepening and diversification of African capital markets. As of September 2025, CMDTF manages a $6 million portfolio across sixteen countries, with the Ethiopia project marking its first initiative outside West Africa, signaling plans to extend interventions to other regions.
