Capital Market Authority Kicks Off Public Consultation

Nov 20 , 2023


[ssba-buttons]

With a series of bills making their way under the Capital Market Authority, a couple of drafts on public offers and participant fees were up for public consultation last week. The session at Skylight Hotel (Airport Road) saw a decent turnout with senior advisors Hanna Tedla, Solomon Bekele, Yohannes Arega and Sirak Solomon centre stage to receive feedback. Looking into compliance of the bill with the commercial code and possible amendments was suggested by participants. Meanwhile, representatives from the private sector expressed worries about a lack of competent skillsets and human capital for such a high standard set by the Authority. Concerns that the public offer bill caters only to prospective investors were raised by company executives. They indicated that navigating between the strict rules to sell shares is an "extremely difficult" challenge. Director General Brook Taye (PhD) quickly pointed out that watered-down regulations to accommodate companies' interests at the expense of investors will not be entertained. He affirmed that investor protection is at the heart of the Authority's inception by the Parliament, indicating the times of loose control over share companies will gradually fade. The foreign currency mentioned throughout the fee draft directive garnered attention in the second half, with a couple of comments to review its legal grounds. Sirak told attendees the intention is to merely indicate the market price while taking the critiques into consideration.


Radar

New Directive Hikes Service Fees for Foreign Investors in Free Trade Zones

The Ethiopian Investment Board has issued a new directive revising the service fees from foreign investors payable in dollars to the Ethiopian Investment Commission (EIC), introducing updated rates for both the One Stop Shop and designated Free Trade Zones. The revised directive came into effect this April following its publication on the websites of the Ministry of Justice and the EIC. Issued pursuant to Article 23 of the Special Economic Zone Proclamation, the directive outlines charges for...


Radar

City Tables 350B Br Budget Plan for Upcoming Fiscal Year

The City Administration has approved a resolution to submit a proposed budget of 350 billion Br for the 2025/26 fiscal year to the City Council for deliberation. According to the Administration's statement on its official social media page, the draft budget is designed with a central focus on poverty reduction, encompassing targeted subsidies for sustainable development, investment in large-scale job-creating projects, and enhanced service delivery to address the growing demands of the reside...


Radar

Ethiopia, UN Launch Joint Plan to Drive Development Through 2030

The Ethiopian government and the United Nations (UN) have signed a five-year development plan outlining national priorities from 2025 to 2030. Signed on June 20 at the Ministry of Finance, the United Nations Sustainable Development Cooperation Framework (UNSDCF) with implications that it aligns with Ethiopia's reform goals and the Sustainable Development Agenda. The plan is backed by a projected 6.5 billion dollars, though only 1.5 billion dollars is currently secured. It focuses on closing t...