The African Development Bank (AfDB) has approved a $400,000 grant for the creation of a Public Disclosure Platform in Ethiopia, marking a pivotal step in the country’s efforts to strengthen its capital market infrastructure and attract both domestic and international investment.
The agreement, signed between the AfDB and the Ethiopian Capital Market Authority (ECMA), is part of the Ethiopia Capital Market Development Support Project, a broader initiative aimed at expanding financial opportunities and deepening investor confidence.
Boosting Transparency and Fair Price Discovery
The Public Disclosure Platform, backed by the African Development Bank’s $400,000 grant, will enable timely and accurate dissemination of company information to investors, shareholders, and market participants.
According to AfDB, this digital infrastructure will promote transparency, improve decision-making, and ensure fair price discovery in Ethiopia’s emerging securities exchange.
Ms. Hana Tehelku, Director General of ECMA, emphasized that the project represents a major milestone for Ethiopia’s financial sector.
“This grant reflects our shared vision for a vibrant and resilient capital market,” she said, noting that the initiative will support infrastructure development, product diversification, and capacity building at the Ethiopian Securities Exchange (ESX).
Expanding Financial Products
In addition to the Public Disclosure Platform, the grant will support the introduction of new financial instruments, including Exchange Traded Funds (ETFs), sukuks (sharia-compliant products), and green bonds.
These offerings are expected to diversify investment options while aligning with global sustainable finance practices.
Mrs. Akane Zoukpo Sanankoua, AfDB’s Manager for Capital Markets Development, explained that the project aligns with the Bank’s broader goal of mobilizing long-term resources for Africa.
“The Ethiopia Capital Market Development Support Project aims to improve access to long-term financing for both public and private sectors,” she said.
Backed by International Donors
The funding comes from the Capital Markets Development Trust Fund (CMDTF), a multi-donor trust fund managed by AfDB.
Established in 2019, CMDTF is supported by the Netherlands, Luxembourg, and the Swedish International Development Cooperation Agency. As of September 2025, the fund has a $6 million active portfolio across 16 African countries.
Mr. Sebastian Beyenburg, First Secretary at the Embassy of Luxembourg in Addis Ababa, noted that Ethiopia is the first country outside West Africa to benefit from CMDTF’s support, signaling the fund’s intention to broaden its reach across Africa.
Strengthening Ethiopia’s Financial Future
With the launch of the Public Disclosure Platform, experts believe Ethiopia is positioning itself as a more attractive investment destination.
The initiative builds on AfDB’s earlier support in 2021, which contributed to the development of Ethiopia’s capital market legal framework.
By enhancing transparency and broadening financial products, the project is expected to stimulate capital inflows, encourage sustainable financing, and contribute significantly to Ethiopia’s long-term economic growth
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