The Ministry of Finance of Ethiopia, the new state enterprise Ethiopian Investment Holding (EIH), and FSD Africa last week signed a memorandum of understanding to establish Ethiopia Security Exchange (ESX).
The agreement is signed at the Hyatt Regency Hotel in the capital, Addis Ababa. It is recalled that the National Bank of Ethiopia began the process to establish capital market in Ethiopia.
Also read: Ethiopia wonderful hidden secrets
The regulatory body introduced a proclamation to govern the stock market in 2020 and it was later legislated by Parliament. It is indicated that ESX will serve as a key market institution that will provide Ethiopian entrepreneurs and businesses with access to long term finance.
ESX will democratize corporate ownership of the nation’s largest and most influential companies, empowering Ethiopians with a direct stake in their country’s economic infrastructure, according to the twitt by EIH. “EIH’s role in the development of capital markets goes beyond its investment in ESX. As the owner and manager of state-owned companies, EIH will serve as the wind underneath ESX’s wings by floating minority shares of selected companies under its management,” it said.
The Holding Group was also recently delegated to oversee the privatization of Ethio Telecom, which was being handled by the Ministry of Finance and Public Enterprises Holding Agency. Reports show that in Africa currencly 38 countries have capital markets.