• Awash Bank becomes fourth company listed on Addis exchange
• Move adds depth to a market launched in 2025
• Listing reflects broader financial sector liberalization

Awash Bank SC, one of Ethiopia’s largest private banks, became the fourth company to list on the Ethiopian Securities Exchange (ESX) on April 23. The bank has officially listed 37.9 million ordinary shares out of a total of 54 million registered shares.

For ESX chief executive Tilahun Kassahun, the listing marks a milestone in building a functioning capital market in a country long dominated by a state-led economic model.

A flagship of the private sector

Founded in 1994 after the fall of the Derg regime, Awash Bank is seen as a symbol of Ethiopia’s private sector development. With around 12,000 shareholders and a net profit of 18.7 billion birr (about $120 million) in its latest financial year, the bank enters the market with strong fundamentals.

Its listing follows those of Wegagen Bank, Gadaa Bank, and Ethio Telecom, whose partial privatization helped launch the exchange in early 2025. For investors, Awash Bank’s entry is expected to improve liquidity and broaden the market, which aims to reach nine listed companies by July.

A test for financial liberalization

The growing activity on the exchange reflects Ethiopia’s broader shift toward economic liberalization under Prime Minister Abiy Ahmed. The government has introduced several structural reforms, supported by the IMF and the World Bank, including the floating of the birr in July 2024 to stabilize the foreign exchange market and attract foreign investment.

A key reform has been the opening of the financial sector to international players. Parliament has passed legislation allowing foreign banks to take stakes in local institutions or establish subsidiaries.

This strategy is designed to diversify financing channels by enabling companies to raise capital directly from the market rather than relying solely on bank lending. It also aims to bring in new technologies and international expertise. To support this transition, authorities have launched a mobile trading application, “Neway,” to channel domestic savings into productive sectors and reduce reliance on bank financing for public spending.

The early signs of this transformation are visible. While the equity market is still developing, the interbank money market has shown strong activity, with transaction volumes exceeding 2,000 billion birr in March.

The next challenge for the ESX, structured as a public-private partnership with support from Nigerian Exchange Group, is to attract other major institutions such as Dashen Bank and Bank of Abyssinia. Awash Bank’s listing will serve as an important test of confidence for both domestic and international investors.

Fiacre E. Kakpo