In 2026, Ethiopia is posting one of the fastest economic growth rates in Africa. Forecasts from various institutions—notably the IMF and the African Development Bank, put this rate between 7.8% and 9.2%, or perhaps even slightly higher. The Ethiopian Securities Exchange (ESX), although still in its early stage, is expected to support the country’s investment drive and reinforce confidence in the outlook.
Launched just over a year ago, the Ethiopian exchange aims to further the economic liberalization of this East African regional power. Its goal is to facilitate corporate financing through capital markets and to attract both domestic and foreign investors.
All of this is part of the reform agenda initiated by Ethiopian Prime Minister Abiy Ahmed since he took office in 2018.
Opening up the economy.
Numerous initiatives have been launched to open the country’s economy to market mechanisms. The ESX is among the most visible elements of that push. “The government’s primary responsibility is to create the right conditions for businesses to thrive, so that long-term economic progress depends on empowering private actors to innovate and grow,” Abiy said recently.
The government is seeking to move Ethiopia away from its traditionally state-led model towards a more market-oriented economy. The strategy is intended to attract private capital, expand exports and strengthen foreign-currency revenues.
Recent trade figures underline that momentum. Coffee revenues rose by more than 80% in 2025, while gold now generates over 40% of export earnings. Horticultural products and leather also remain important sources of foreign revenue.
Drivers of growth
Ethiopia’s economic growth is driven by a combination of factors: the establishment of the Ethiopian stock exchange and strong export performance, alongside a diversification of markets—particularly toward China, the Arab world, and Asia more broadly. Also playing a key role is the business community, which rallied to support the exchange from its very inception. “The National Bank of Ethiopia is committed to continuous innovation and collaboration to ensure that our capital-markets ecosystem contributes to Ethiopia’s long-term financial prosperity,” said Mamo Mihretu, Governor of the National Bank of Ethiopia.
Abiy has likewise presented the exchange as a long-term institution. “The creation of the Ethiopian Securities Exchange will significantly stimulate the country’s economic development while building a sustainable institution that meets the needs of Ethiopian and regional issuers and investors,” he said.
Outlook remains positive
However, as previously noted, the ESX is far from having reached its full potential. Forecasts indicate that the exchange aims to list 50 companies within the next five years. Ethiopian banks, followed by the national telecommunications company, were the first to join this financial marketplace to attract foreign investors and capital.
There is no doubt that, given this strong economic growth momentum and the Prime Minister’s policy of openness—backed by ambitious investments, particularly in the energy sector (most notably Africa’s largest hydroelectric project, the Grand Ethiopian Renaissance Dam on the Blue Nile)—Ethiopia’s growth boom shows no signs of bursting.
A future listing of Ethiopian Airlines could provide a major boost. As one of Africa’s leading carriers, the company would likely draw substantial investor interest if the government chose to offer shares to the public.
Sources: AfDB – Pouvoirs d’Afrique – Financial Afrik –