Ethoiopia’s securities exchange(ESX) is set to receive a major technological upgrade, having signed two landmark agreements for an Electronic Trading Platform (ETP) and a Broker Back Office and Order Management System (BBOMS).
These agreements with Infotech Private Limited, announced today, August 13, 2024, represent a pivotal step in establishing Ethiopia’s inaugural exchange, which is expected to launch in the coming months.
Hassan Javid, General Manager of Marketing at Infotech, expressed his confidence that the platform will be ready for the upcoming exchange.
“We have a proven track record of delivering the platform on time, as evidenced by our successful launches in over 18 markets across the region,” he told Shega via email.
Infotech Private Limited boasts extensive global experience, having digitized stock exchanges in Rwanda, Malawi, and Ghana, as well as the Capital Markets Authority of Kenya, among others. The company has also played a crucial role in providing post-trade infrastructure in various markets. “We have a solid African footprint,” Javid emphasized.
The Electronic Trading Platform will provide a trading environment that supports real-time transactions. This platform aims to ensure market transparency, improve liquidity, and offer investors, both local and international, a seamless and secure trading experience.
Meanwhile, BBPPMS is designed to automate and streamline the operations of brokerage firms. This system will handle critical functions such as onboarding of investor clients, order management, reporting, and transaction processing. The system also includes various mobile applications and web-based interfaces that allow investors to have a real-time market watch and place orders directly.
Reflecting on the move Tilahun E. Kassahun (PhD), founding CEO of the Exchange said, “the technology solutions provided by Infotech will not only modernize our trading operations but also contribute to the broader development of the financial sector in Ethiopia.”
The World Bank provided financing towards the cost of the Small and Medium Enterprises Finance Project (SMEFP) for Ethiopia from which part of the proceeds were directed towards the design, installation, and supply of the two platforms.
Requests for Proposals in an international procurement process were announced back in December of last year with rigorous qualification criteria. A minimum of three million dollars in annual turnover was required for companies bidding for the design, installation, and supply of the ETP while one million dollars was needed for the BBBMS system.
An implementation period of sixteen months was indicated during the announcement of the proposal last year prescribed after the project’s commencement.
Source: Shega
