The establishment of capital market in Ethiopia will be a game changer for the improvement of entire financial system in the country, an expert at the UK based Chartered Institute for Securities and Investment said.
It is to be recalled that Ethiopia had approved Capital Markets Establishment Proclamation in 2021 to provide the legal foundation for the development of capital markets in the country and several activities have been carried with a view to create conducive environment for its implementation.
Representing the UK Chartered Institute for Securities and Investment (CISI), Sandy Wade told ENA that the chartered institute has signed the interest of intent with Ethiopian Capital Market Authority to work together in the future in providing the necessary exams and qualifications.
This will enable the Ethiopian market open in a way that meets the requirements of consistent, ethical and transparent market which will give confidence to those who engage in and around the capital markets and the Ethiopian stock exchange, he said.
The CISI, which is a global professional body for those in the financial and investment profession, has trained over 500 Ethiopian professionals on the international introduction to securities and investment.
Wade noted that this gives a very solid foundation for those people in working of the capital market and securities, which really build bedrock on which Ethiopians build their additional skills as they move up the level of training through chartered institute.
The expert has commended the efforts being carried out in Ethiopia to commence capital market as it will help the country stand at equal footing with experienced countries in the world.
“The capital market will allow Ethiopia to make use of savings that are already in place in Ethiopia to bring them into the market, allow them to work for Ethiopia, at the same time bring in finance from outside Ethiopia and into the Ethiopian market—it will be a game changer for the Ethiopian financial system,” he said.
I think there is an education to be done for ordinary Ethiopian to understand what it is and how it is valuable to the country, the expert said, adding that this will be the role of the capital market authority to the extent that message to the people of Ethiopia so that they understand this is not about rich man getting richer, this is about making the financial system of Ethiopia work better for everybody.
CISI has been working across Africa for many years; working particularly with African securities exchange association as it is the certification of choice across Africa , so, positioning Ethiopia alongside as an equal of the other capital market in Africa.
Capital market plays critical role to bring foreign investment in Ethiopia vital to the economic development of the country, he indicated.
“To take the banking system as an example, all remain the same level, only the Ethiopian money is available to Ethiopia. If you open the financial market to the outside, you will allow others to bring the money in and you will allow the bank outside from Ethiopia to make an investment in Ethiopian bank which brings foreign capital into Ethiopia and it strengthen your economy.”
We are developing with Ethiopian capital market authority regulatory exams which will meet the Ethiopia’s circumstances and this is something we had done in a number of countries across Africa to create good exams meeting all of the international requirements, he said.
We are very pleased to be working with Ethiopian capital market authority to building this capacity in Ethiopia because what we have seen is fundamental in the improvement of the Ethiopian financial system for the benefit of Ethiopians, sandy said.
Capital market creates opportunity for investors and companies to engage in a new way of investment to raise funds by selling their shares and encourage private investment.
It will also play critical role in paving the way for emerging investors and companies to benefit from distribution of wealth.
Source: Ethiopian News Agency