Addis Ababa, February 2/2023/ENA Ethiopian Capital Market Authority announced that it is undertaking the necessary preparations to issue licenses to capital market service providers over the coming six months.
It is to be recalled that Ethiopia had approved Capital Markets Establishment Proclamation in 2021 to provide the legal foundation for the development of capital markets in the country.
Following the approval of the Proclamation, several activities have been carried with a view to create conducive environment for its implementation. As per the proclamation the government had established an institution and appointed leaders to start for its implementation.
The Addis Ababa Chamber of Commerce and Sectoral Associations has held a stakeholders’ consultation that was organized in collaboration with the Ethiopian Capital Market Authority and Ethiopian Securities Exchange under the theme “Ethiopia’s Capital Market”
Director General of the Ethiopian Capital Market Authority, Dr. Brook Taye said during the consultation that several activities were carried out to reorganize the Authority in order to implement the proclamation.
Accordingly, regulatory guidelines and directives have been prepared as per the proclamation, he said.
Works are also underway to complete the necessary requirements and criteria that need to be fulfilled by those who wish to join in the capital market activities and commence operation in the coming three to six months, the Director General stated.
The authority is exerting efforts to realizing the operationalization of the capital markets as early as possible.
President of the Addis Ababa Chamber of Commerce and Sectoral Associations, Mesenbet Shenkute said for her part that until recently Ethiopia has been one of the 40 countries who do not have capital market in the international capital market.
Capital market is very crucial to strengthen Ethiopia’s investment activities and economic development, Mesenbet said stressing the need to give due attention for the establishment of strong institutions and capacity building in order to properly tap its positive opportunities.
Capital market creates opportunity for investors and companies to engage in a new way of investment to raise funds by selling their shares and encourage private investment.
It will also play critical role in paving the way for emerging investors and companies to benefit from distribution of wealth.