Ethiopian Capital Market Authority (ECMA) announced that it was finalizing preparations to launch the Ethiopian Capital Market. The Authority has already issued 8 draft regulations and directives on the capital market for public consultation. It is also drafting other directives which will be enacted in the near future.

The draft Directives that are currently issued for public consultation by the Authority are Recognition and Self-Regulatory Organizations Directives, Directive on Licensing and Operating Securities Exchanges and Trading Platforms, and Capital Market Service Providers’ Licensing and Supervision Directive. Preparations to launch the stock market are also underway.

According to Besufekad Taye, Legal Advisor of the ECMA, several foreign and domestic investors are showing interest to join the capital market once it is launched. It is to be recalled that ECMA announced this year that it was working to license capital market service providers within six months and launch the market in two years.

ECMA was established in June last year. The regulatory framework for the capital market was enacted in 2021 when the National Bank of Ethiopia issued the Capital Markets Proclamation No. 1248/2021.

Source: Ethiopian News Agency and Fana BC