BY MULATU BELACHEW
ADDIS ABABA– House of People’s Representatives of Ethiopia has approved essential proclamations and documents that enable the country to embark Capital Market in near future.
The National Bank of Ethiopia Governor’s Senior Macroeconomic Advisor Melese Minale told The that creating and enabling environment is unquestionable to make stock exchange viable and vibrant; that is why government has approved very comprehensive proclamations enriched in a very participatory manner.
Though the entire ecosystem doesn’t need to have stock exchange currently, capacity building and awareness raising activities to all actors regarding the project are required when stock market exchange is established and get ready to serve.
Financial institutions, Multinational Corporation (international companies) and government are more expected to participate in stock exchange he stated highlighting that over the past years the reform undertaken has helped rebalance conditions for the project apart from widening the window of privatization.
In the current system, there is no way to know the valuation of companies to know at what price the government is going to sell its share for private companies but if there is stock exchange there is a platform for companies to know what they want to know and there will be a transparent way of determining the price in a democratic to put privatization into effect.
“International companies have contacted us to participate, buy and invest in Ethiopia capital market he said adding that companies have shown keen interest in buying some share of the Ethiopian security exchange market and providing the country with technological services. Investment Banks, and service providers are exploring and asking us when the Capital Market Authority is official established and the stock exchange project set up to have official mandate to proactively go and seek to participate in, ” Melese said.
Ethiopia is going to introduce capital market following the enactment of crucial proclamations, Addis Ababa Chamber of Commerce President Mesenbet Shenkutie said indicating that great integrity, skill, moral and secured law and regulation will make the capital market effective and efficient.
The Ethiopian January 18/2022
