Parliament Legislates Capital Market Establishment Bill


Parliament Legislates Capital Market Establishment Bill

Parliament has legislated a bill that allows for the establishment of a capital market during a regular session held on June 10, 2021.  The nation's first securities exchange, where traders can buy and sell securities such as company stocks and bonds, will be established as a share company through a merger of the government and the private sector. The government's ownership of the share company, dubbed the Ethiopian Securities Exchange, will not exceed 25pc of the Exchange's capital, according to the proclamation.  The market is expected to enable greater access to funding for businesses and projects, serve as an alternative means of financing for the private sector as well as the government during times of economic trouble, and provide new options for those looking to invest. The newly approved proclamation also proposes forming a Capital Market Authority, which will regulate the primary and secondary markets and supervise the listing and delisting of securities.

[ssba-buttons]

Radar

Ethiopia, IFAD Sign 69.2m Dollar Deal to Promote Lowland Resilience

The Ethiopian Government and the International Fund for Agricultural Development (IFAD) have signed a 69.2 million dollar grant agreement to implement Phase II of the Lowland Livelihoods Resilience Project (LLRP II). The grant agreement was signed by Finance Minister Ahmed Shide and IFAD President Alvaro Lario. The project targets climate resilience and improved livelihoods for three million people in pastoral and agro-pastoral communities. Co-financed by the World Bank, LLRP II covers eight reg...


Radar

NBE Expands Diaspora Warning Over Unlicensed Remittance Firms

The National Bank of Ethiopia (NBE) has issued an expanded public warning targeting unlicensed remittance operators abroad, flagging four U.S.-based companies it says are undermining Ethiopia's financial regulations. The warning includes newly disclosed findings and specific cases that underscore growing concerns about illicit cross-border financial activity. Remittance flows remain a vital lifeline for Ethiopia's economy, supporting households and supplying critical foreign currency. But as...


Radar

Stricter Standards Unveiled for Public Auditors, Accounting Firms

The Accounting & Auditing Board of Ethiopia (AABE) has issued a new directive aimed at strengthening oversight and professional standards in the accounting and auditing sector. Grounded in the Financial Reporting Proclamation, the directive addresses long-standing regulatory gaps while preparing the sector for the country's emerging capital market. Key provisions introduce stricter licensing standards for public auditors, professionals permitted to audit public interest entities. Applican...