Gadaa Bank Becomes Second Bank to List on ESX

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Gadaa Bank S.C., a domestically owned commercial bank, has become the second financial institution to list on the Ethiopian Securities Exchange (ESX), following Wegagen Bank’s debut in May.

This follows the Ethiopian Capital Market Authority’s (ECMA) approval of the bank’s listing prospectus on June 17, 2025. The registration covers 1,232,728 ordinary shares already held by existing shareholders.

The ESX, launched in January 2025, was established to provide a regulated platform for securities trading in Ethiopia. Gadaa Bank’s listing is part of ongoing capital market reforms designed to move away from informal share transactions.

Speaking at the listing ceremony in Addis Ababa, Gadaa Bank CEO Wolde Bulto described the move as a step toward greater financial participation.

“This will create liquidity for our shareholders and unlock new avenues for capital formation. It allows us to expand our reach and deliver innovative financial services to our growing customer base.” he said.

Board chair Hassen Hussien said the listing is part of the bank’s corporate governance plans.

“Being listed on the Ethiopian Securities Exchange reaffirms our dedication to transparency, growth, and public participation. We believe this will enhance our financial capacity, improve corporate governance, and strengthen our credibility in the market,” he said.

The registration involved a secondary listing, meaning that the shares registered for trading were not newly issued but previously held by shareholders. The bank submitted a full prospectus to ECMA, outlining its financial and operational status as required by listing regulations.

Dr. Tilahun E. Kassahun, Chief Executive Officer of the ESX, welcomed Gadaa Bank’s entry as another step toward building a functional capital market.

“Gadaa Bank’s listing demonstrates the growing confidence in our Exchange and the value of public markets in driving inclusive economic growth. We look forward to supporting more institutions in accessing capital, deepening market participation, and building long-term value for the Ethiopian people,” he said.

The ESX is working toward beginning full trading operations later in 2025. Once active, the platform will allow shareholders to trade their shares through a regulated system. This transition is expected to formalize share trading, which in Ethiopia has historically taken place through informal channels.

The exchange, supported by the International Finance Corporation (IFC), aims to reach 90 listings in its first ten years. Government bonds are scheduled to be listed from July 2025.

Companies listed on the ESX are required to meet Environmental, Social, and Governance (ESG) reporting standards, as part of ongoing efforts to improve market transparency and accountability.

Gadaa Bank’s listing increases the number of shares available for future trading and may encourage more financial institutions and companies to consider the exchange as a financing and ownership diversification channel.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.