The Ethiopian Capital Market Authority reiterated that it would start issuing licenses to capital market service providers after three months. It is to be recalled that the Authority announced in February this year that it was working to license capital market service providers within six months.

After the Capital Market Proclamation was enacted in 2021, the Capital Market Authority has been working on regulatory guidelines, directives, and minimum admissions criteria which need to be fulfilled by those who apply to be licensed as capital market service providers.

The Capital Market Authority was established in June 2022. It has been reorganized to be aligned with the Capital Market Proclamation. It is expected that the Authority will launch operations within the coming six months. 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.

Source: Fana BC