Ethiopia's Nascent Stock Market Unveils Mobile App Aimed at Expanding Retail Investor Base

Ethiopia’s young capital market took a digital step forward this week as the Ethiopian Securities Exchange introduced Neway, its first mobile application, a platform designed to allow Ethiopians to follow market activity and access securities trading services from their phones.

The launch signals an early attempt by the country’s nascent exchange to broaden participation in the financial system and bring retail investors into a market that has historically been limited to a narrow circle of institutions.

Developed in partnership with the technology firm Infotech Private Limited, the application links to the exchange’s core trading infrastructure, including the Broker Back Office (BBO) and Order Management System (OMS), which were also provided by the technology vendor. The integration allows users to access market data, follow securities prices and trading activity, and connect with licensed intermediaries for investment services.

Exchange officials say the platform is designed to accommodate both first-time investors and more experienced market participants. Through the application, users will be able to monitor listed equities and debt instruments, including bonds, while licensed brokers and investment banks handle the actual execution of trades.

According to the platform’s terms of service, the application is intended primarily as a technology gateway rather than a direct brokerage service. Users who wish to open investment accounts are redirected to licensed intermediaries, including brokers, dealers and investment banks, which are responsible for onboarding clients and conducting Know Your Customer compliance.

The exchange says it does not provide brokerage services, trade execution, portfolio management or investment advice through the application.

Instead, the platform offers several informational and educational tools, including a market watch feature that provides access to real-time and historical data such as securities prices, indices and trading activity. It may also offer simulated or mock trading, allowing users to practice investment strategies in a virtual environment without financial risk.

The educational feature is designed to familiarize new investors with the mechanics of capital markets before they begin trading through licensed intermediaries.

“Neway,” a word that translates roughly to wealth or asset, was chosen after a competition among 80 suggestions for its simplicity, its connection to traditional references to wealth and its relative ease of spelling.

Tilahun Kassahun (PhD), the exchange’s chief executive officer, said the platform was designed to bring investment opportunities closer to ordinary citizens.

“The name reflects our goal of making wealth creation accessible to every Ethiopian,” he said during the launch. “With this application, the market is now literally in the hands of the people.”

The platform’s user agreement also includes several disclaimers common to financial technology services. Market data provided through the application is offered “as is,” the exchange notes, and may occasionally be subject to delays or omissions. The exchange also states that the app does not provide financial advice or recommendations to buy or sell securities.

Tewabe Worku, a senior manager in the exchange’s technology department, said the application is intended primarily for wider public use, as capital market service providers already operate their own web-based portals. He added that individuals interested in learning about the market can explore the platform without necessarily becoming investors.

SOURCE : SHEGA.CO