Investor participation in Ethiopia’s emerging capital market is steadily increasing, with more citizens opening investment accounts and trading securities, according to Hana Tehelku, Director General of the Ethiopian Capital Market Authority (ECMA).
Speaking to the Ethiopian News Agency (ENA), Hana said the development of the capital market is among the tangible outcomes of Ethiopia’s Homegrown Economic Reform Agenda.
She noted that the establishment of a national capital market has created new opportunities for citizens to invest in securities and participate in the country’s expanding financial sector.
Since ECMA was established, significant work has been undertaken to build the regulatory and institutional framework required for a transparent, predictable and secure market.
Hana said the experience of the past two years has demonstrated that a functioning capital market can operate in Ethiopia, supported by efforts to establish a strong and credible regulatory institution.
ECMA currently oversees 26 registered companies, including seven operating in the securities market.
Market infrastructure is also being modernized. Around 187,000 physical securities records have been digitized and transferred into the central securities depository system, while nearly 38,000 citizens have opened investment accounts. Most account holders are actively participating in securities trading.
Daily transaction volumes now regularly exceed Birr 50 million and have at times surpassed Birr 60 million.
Investor protection remains a major focus for the Authority. ECMA applies rigorous assessments before issuing licenses and continues to supervise licensed market participants after they begin operations.
The Authority has also introduced a technology based surveillance system to monitor trading activities, identify irregularities and support enforcement of market rules.
Alongside regulatory oversight, ECMA is conducting public awareness campaigns on illegal market practices, investor risks and applicable penalties as part of efforts to strengthen market confidence and support sustainable financial sector growth.
Source: Ethiopian News Agency
