ADDIS ABABA - Ethiopian Prime Minister Abiy Ahmed on Friday officially launched the country's first stock exchange in more than 50 years, describing it as a "historic milestone" for the nation's economy.

The Ethiopian Securities Exchange (ESX) is seen as a significant step toward establishing "a vibrant capital market ecosystem" in the East African nation, aligning with the Ethiopian government's recent efforts to liberalize the country's economy and financial sector.

"In a historic milestone for our economic and financial landscape, we have officially rung the bell to launch the Ethiopian Securities Exchange," Abiy said after ringing the bell to mark the opening of the stock exchange.

The launch of the ESX would enhance the country's financial system and contribute to the development of an inclusive economy, he said, adding that the government has invested significant time and conducted extensive research to ensure the exchange's effectiveness.

The ESX, which operates across various market segments and offers a range of financial products and services tailored to businesses, government entities and institutions, will serve as a platform for both Ethiopian and foreign investors to easily trade in listed equity and debt instruments.

The Ethiopian government said that the ESX aims to provide "a modern, reliable and efficient environment for securities trading through adaptation of modern exchange business operations, skill, technology and trust."

It also noted that the establishment of Ethiopia's stock exchange would significantly boost the country's economic development while building "a sustainable institution that meets the needs of both Ethiopian and regional issuers and investors."

Meanwhile, Abiy invited investors to explore opportunities in Ethiopia, saying it is "a fast-growing economy with immense potential and a dynamic trajectory toward prosperity."

The launch of the ESX marks the first stock exchange in Ethiopia since the fall of Emperor Haile Selassie in 1974.

As part of its recent economic liberalization measures, the Ethiopian government last year opened the retail sector to foreign investors, a move that reversed its previous policy of reserving the sector exclusively for local entrepreneurs.

According to the World Bank, Ethiopia, with a population of about 126.5 million, is the second most populous nation in Africa after Nigeria and one of the fastest-growing economies in the region.