The Ethiopian Capital Market Authority has made an announcement regarding the initiation of licensing procedures, starting from Monday, February 12, 2024.

Dr. Brooke Taye, the Executive Director of the Authority, expressed that since its establishment, the organization has been actively working on structuring itself and establishing a legal framework. Currently, their focus is on formulating guidelines for licensing and regulation of capital market service providers. As a result, they have opened registration for entities operating within the sector, beginning on Monday.

A significant development is the Authority's decision to grant licenses to investment banks for the first time in Ethiopia. This framework will include five public development organizations. In total, the Authority plans to issue 15 new licenses.

Regarding foreign investment banks, there have been inquiries from three major institutions expressing interest in potential involvement. Their entry into the country is expected to have a substantial impact on the market dynamics.

Dr. Brooke Taye emphasized the Authority's dedication to robust regulatory practices, governance, and investor protection, which are crucial for the growth and stability of the capital market sector in Ethiopia. The Ethiopian Capital Market Authority serves as the regulatory body responsible for overseeing and promoting the development of the country's capital market. Their primary objective is to establish a transparent, efficient, and investor-friendly environment that facilitates economic growth and prosperity.

Source: Addis Zemen