The African Development Bank (AfDB) has underscored the importance of a robust capital market in driving Africa's economic growth, particularly for large-scale infrastructure projects.
Leandre Bassole (PHD), AfDB's Deputy Director-General for East Africa, emphasized the need for a strong legal and regulatory framework to underpin a thriving capital market. Such a market, he explained would offer businesses diverse funding options and provide African institutional investors with broader investment opportunities.
Aligned with its ten-year strategy, the AfDB is committed to mobilizing financing from various sources across the continent. In support of Ethiopia's financial sector liberalization, the Bank will collaborate with the Capital Market Authority (CMA) to build a resilient and efficient domestic capital market.
"The Bank will provide technical assistance for regulatory oversight and the operation of Ethiopia's stock exchange, facilitating access to long-term financing and enhancing skills development for both public and private sectors, including SMEs," Bassole stated.
Hana Tehelku, Director-General of the The Ethiopian Capital Market Authority (ECMA), highlighted the crucial role of investor and public participation in the capital market's success. The ECMA has already licensed investment service advisory firms to encourage public involvement through collective investment schemes.
"The focus will be on regulations that benefit small enterprises and foster an inclusive market. This includes licensing and supervising market participants and developing diverse financial products to ensure fairness, transparency, and efficiency," Hana explained.
The ECMA aims to safeguard investors by mitigating market risks and maintaining integrity in the evolving financial landscape. These collective efforts are poised to transform Ethiopia's capital market into a dynamic economic driver, accelerating growth and development across various sectors. The story is from The Ethiopian Herald.