Addis Ababa, May 17, 2025 — Ethiopian Securities Exchange (ESX) announced that it has signed an Advisory Engagement Letter with the International Finance Corporation (IFC) to initiate the Ethiopia Money Market Capacity Building Project, an effort to strengthen institutional capacity and support the establishment of a national dealer’s association representing Ethiopia’s local currency and foreign exchange interbank markets.
ESX told Fana Media Corporation that the project focuses on enhancing the skills of senior management and operational staff at commercial banks and other capital market actors through internationally recognized training and certification programs such as those offered by the ACI Financial Markets Association (ACI FMA). The training will cover key areas including the local currency and foreign exchange interbank markets, treasury operations, and back-office finance functions.
According to ESX, the national dealer’s association is a critical component of the initiative and will formalize collaboration among participants in Ethiopia’s money market, serving as an important institutional foundation for its development.
ESX told Fana Media Corporation that the project aligns with its broader roadmap to develop a functional interbank market on its centralized trading platform, which is foundational for creating vital financial instruments such as Treasury Bills, corporate bonds, and commercial papers. A liquid interbank market enables effective market-based pricing of short-term capital and supports the growth of robust long-term debt and equity capital markets.
ESX will facilitate the project’s execution as the central market organizer and licensed trading platform provider for the interbank market. The collaboration with IFC aims to advance capacity building efforts and support the dealer association’s formation.
While the initiative primarily aims to build wholesale interbank money market trading capacity, ESX told Fana Media Corporation that the knowledge gained could encourage the future development of new money market instruments, including spot and derivative foreign exchange products.
Commenting on the project, Aliou Maiga, IFC’s Director for the Financial Institutions Group in Africa, stated, “Strong, well-functioning capital markets are foundational to a dynamic financial system and sustainable diversified economic growth. This collaboration supports Ethiopia’s plans to modernize its financial market and aligns with the country’s economic ambitions.”
ESX CEO Tilahun Esmael Kassahun expressed appreciation for IFC’s support and highlighted that capacity building and product development represent the next frontier for Ethiopia’s capital market.