UNDP Panel Underscore Capital Markets' Potential to Attract Investors

Jun 12 , 2023

A bill for public offerings and trading is underway by the Ethiopian Capital Markets Authority, which will restrict offering shares to the public to its purview and regulation. Brook Taye (PhD), director general of the Authority, also promised the realisation of the nation's capital market next year. It was revealed during a panel discussion on the role of Small & Medium Enterprises (SMEs) in creating inclusive and lively capital markets at the Sheraton Hotel last week, hosted by UNDP. Panellists emphasised the importance of policy consistency, continuity and institutional conduct for capital markets that are attractive to investors. Tiruhan Saleh, the Resident Representative of UNDP Ethiopia, indicated forecasted the transformation of Ethiopia's business landscape by the launching of the capital market. Brook also noted how SMEs could use their receivables to participate in the market reciting on a small enterprise which provides services for Safaricom. The panel was moderated by Mathew Davies, managing director of Renew Capital, a marked increase in financial awareness over the past few years. He recalled that not a single person knew what equity was when he first came to Ethiopia a decade ago. The Ethiopian Securities Exchange recently announced that it was offering a 75pc stake to the private sector.


Ethiopia's Central Bank Dips a Toe in the Open Market Waters

In a historic move to manage liquidity within the banking system, the National Bank of Ethiopia (NBE) held its first-ever open market operation (OMO) on July 11, 2024. The auction drew notable interest from the financial sector, with 16 bidders submitting nearly 20 billion Br. The central bank accepted the total amount of bids, reflecting the banking industry's robust engagement with this new monetary policy tool. The NBE's foray into OMOs is seen as a strategic measure to control the mone...


CBE Shatters Profit Record at 25.6B BR

The state-owned Commercial Bank of Ethiopia (CBE) registered a record-breaking 25.6 billion Br in gross profits for the ended fiscal year, driven by aggressive cost-cutting measures. While CBE faced a challenge earlier in the year with a system glitch, the bank has demonstrably grown its customer base, now exceeding 45 million people. Its total deposits surpassed the trillion birr mark, reflecting a major increase of 170 billion Br. The Bank's revenue also grew by 13pc, reaching 135.4 billion...


Ethio telecom Dominates Industry with Expanding Profits, Coverage

The state-owned teleco company netted 21.7 billion Br in the financial year, posting a 21.7pc jump in revenues to 93.7 billion Br from last financial year. While it has not enjoyed a monopoly since the entrance of Safaricom Ethiopia three years ago, its annual revenues have taken a leap with the competition. The centenarian operator increased its customer base by 8.9pc to reach 78.3 million, with an 85.4pc geographical coverage. Its nearly three-year-old mobile money service, Telebirr, is use...