African Development Bank and Ethiopian Capital Market Authority Sign Agreement for Public Disclosure Platform and Financial Product Development

Strategic Insights -

The African Development Bank Group and the Ethiopian Capital Market Authority have signed a grant agreement worth $400,000 to establish a public disclosure platform and develop new financial products, including exchange traded funds and green bonds, at the Ethiopian Securities Exchange. This initiative is part of the Ethiopia Capital Market Development Support Project, supported by the Capital Markets Development Trust Fund (CMDTF). The planned public disclosure platform will facilitate timely and accurate dissemination of company information to investors, shareholders, and other market participants, enhancing decision-making and fair price discovery in the market. The project also aims to introduce new and diversified product offerings, including Exchange Traded Funds, sukuks, and green bonds.

Key Takeaways:

  • The grant agreement is worth $400,000 and will support the establishment of a public disclosure platform and the development of new financial products at the Ethiopian Securities Exchange.
  • The public disclosure platform will facilitate timely and accurate dissemination of company information to investors, shareholders, and other market participants, enhancing decision-making and fair price discovery in the market.
  • The project will introduce new and diversified product offerings, including Exchange Traded Funds, sukuks, and green bonds.
  • The initiative is part of the Ethiopia Capital Market Development Support Project, supported by the Capital Markets Development Trust Fund (CMDTF).
  • The CMDTF is a multi-donor trust fund managed by the African Development Bank, funded by donors including the Ministry for Foreign Trade and Development Cooperation of the Netherlands, the Ministry of Finance of Luxembourg, and the Swedish International Development Cooperation Agency.
  • The CMDTF has an active portfolio of $6 million covering sixteen countries, as of September 2025.
  • The Ethiopia Capital Market Development Support Project is the first project outside West Africa to be supported by the Trust Fund.
  • The project aims to contribute to the expansion of Ethiopia's financial sector and economy by improving access to long-term financing for the public and private sector through capital markets.

Statistics:

  • $400,000: The value of the grant agreement signed by the African Development Bank Group and the Ethiopian Capital Market Authority.
  • $6 million: The active portfolio of the Capital Markets Development Trust Fund (CMDTF), covering sixteen countries, as of September 2025.
  • 16: The number of countries covered by the CMDTF's active portfolio, as of September 2025.
  • 2025 (September): The date by which the CMDTF's active portfolio reached $6 million.

Sources:

  • [African Development Bank Group (AfDB), "African Development Bank and Ethiopian Capital Market Authority sign grant to boost capital market development", 2025, URL: www.afdb.org]
  • [African Development Bank Group (AfDB), "Capital Markets Development Trust Fund (CMDTF)", 2025, URL: www.afdb.org]
  • [African Development Bank Group (AfDB), "Ethiopia Capital Market Development Support Project", 2025, URL: www.afdb.org]