The Ethiopia Capital Market Authority (ECMA) which was established in June 2022 is working to launch the Ethiopian Capital Market in two years. The regulatory framework for the capital market came into picture in 2021 when the National Bank of Ethiopia (NBE) issued the Capital Markets Proclamation No. 1248/2021.

According to Hikmet Abdela, the Director General of Accounting and Audit Board of Ethiopia and Board Member of Ethiopia Capital Markets, ECMA is currently carrying out pre-launching activities. She also related that trainings that target capacity development were important to achieve the goals of the Authority. Lack of skilled manpower and professionalism were some of the problems that deterred the establishment of a capital market in Ethiopia in the past.

Besides regulating the capital market, ECMA would also supervise other related activities. The minimum admission criteria and conditions of enlisting in the exchange are also regulated by the Authority.

Source (including image): Fana BC

Additional source: UNDP