Market Structure · Rules & Market Structure

Rules & Market Structure

How Ethiopia’s Treasury Bills are issued, traded, recorded, and supervised: the rules that sit behind every auction.

4 min readReferenceMarket structure

Issuance framework

Treasury Bills are issued under the government’s public borrowing framework, which determines how government securities are offered and how public debt financing is managed.

In Ethiopia, the T-Bill market is governed by Directive No. 296/2020 on the establishment and operation of the Government of Ethiopia Treasury Bills market, the legal basis for how bills are offered, auctioned, and settled.

Auction rules

Treasury Bill auctions follow defined operational procedures covering:

Auction announcements
Bid submission timelines
Pricing mechanisms
Allocation processes
Settlement arrangements

These rules create consistency in how auctions operate.

Market access rules

Retail investors typically access Treasury Bills through licensed intermediaries, which helps ensure participation happens through supervised market channels.

Since trading officially opened on the Ethiopian Securities Exchange (ESX), individuals can now participate in government securities through regulated brokers, with a minimum stake of just 5,000 birr.

Applicable fees

Participation costs are capped by the ESX fee schedule. Two regulated components apply to Treasury Bills:

Transaction fee
0.021%

Collected and transferred by ESX Members and Trading Participants on Treasury Bill transactions.

Maximum brokerage fee
0.1%

The maximum a member of the Exchange may charge on a Treasury Bill.

Source: ESX fee schedule (March 2025). Always confirm current fees with your intermediary before investing.

Securities recordkeeping & settlement

Treasury Bills are increasingly managed through digital securities infrastructure. The Central Securities Depository (CSD) supports:

Electronic ownership records
Transfer management
Settlement processing
Post-trade recordkeeping

This improves efficiency and transparency.

Market conduct & supervision

Licensed participants operate under regulatory oversight, which helps promote:

Fair market conduct
Proper licensing standards
Operational accountability
Investor protection

For investors, this structure means Treasury Bills are not informal investment arrangements. They operate within a supervised market system with defined rules and operational safeguards.

Treasury market rules and infrastructure may continue to evolve as Ethiopia’s capital markets deepen and digital market systems expand.

Sources & official references
Treasury Bills Market Directive No. 296/2020
The establishment and operation of the Government of Ethiopia Treasury Bills market, the governing legal framework.
Dematerialization of Government & NBE Securities Directive
Directive MFAD-001/2025: moves government and NBE securities into electronic (dematerialized) form, the basis for CSD registration and settlement.
Trading officially opens on the ESX
The Ethiopian capital market launched regulated trading of government securities and equities, Ethiopian Capital Market Authority (ECMA).
ESX Fee Schedule
The Ethiopian Securities Exchange fee schedule: transaction fee (0.021%) and the maximum brokerage fee (0.1%) for Treasury Bills.
Want to understand how auctions actually work in practice?
Explore the Auction Participation Guide
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