Ethiopia is getting its first ever stock exchange any time soon. Far behind, but not bad at all. The country’s Council of Ministers of Ethiopia has, to that effect, approved a draft law prepared by the National Bank of Ethiopia that allows Ethiopia to introduce capital market.
Capital market also serves citizens as an alternative saving mechanism facilitating investments in stocks. Such increase in the investments coming from domestic saving, will reduce Ethiopia’s dependent in foreign direct investment, according to the statement. It also stated that capital market plays critical role in stabilizing the macro-economy by fixing balance of payment of the country.
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Including the neighboring Kenya’s Nairobi Stock Exchange, currently around 30 African countries have capital markets / stock exchanges. Ethiopia is expected to start listing of public companies, which are being regulated by the National Bank of Ethiopia such as, shares of bank and insurance companies. The introduction of stock exchange is expected to allow shareholders of the banks and insurances in Ethiopia to sell their stock any time and get their money or invest in other stocks, among others.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer