Ethiopia’s Capital Market Authority will launch after the Director General’s approval. It is expected to be finalized in the current fiscal year. In addition, four board members and a board chair will be nominated. The board will have seven members, including the central bank governor, the Accounting and Audit Board of Ethiopia (AABE) director, and the director-general.
The Authority supports the national economy development by promoting financial innovation and sharing investment risks. It will manage financial products listing & delisting such as bonds and stocks on the trading platform, grant licenses for an operation to securities brokers, securities dealers, investment advisers, fund managers, investment banks, and collective investment schemes. It will also engage with the approval of operation as a securities exchange and derivatives exchange, among other duties.
Once the Director-General has been approved, it will grant an exchange license to a share company, Ethiopian Securities Exchange (ESE), to provide a trading platform for financial products. The government will have a 25% share.
The Ethiopian Securities Exchange (ESE) will be operational in 2023. Once the ESE is established, the next step consists of listing IPOs, with high expectations on banks, insurance companies, MFIs, SOEs, and international brand hotels.
