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.
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