ADDIS ABABA — The Ethiopian Securities Exchange (ESE) has announced its readiness to accommodate foreign investors in the nation’s securities market, marking a significant step in Ethiopia’s financial sector development.
According to Ethiopian News Agency, a senior legal expert at ESE, the exchange is prepared to serve as a vital alternative source of financing for both the government and private sectors in Ethiopia. The ESE, a hybrid of private and public sector efforts, aims to streamline trading and reduce reliance on traditional bank loans by allowing public enterprises to directly mobilize funds from the public and investors.
Hailemeskel elaborated that foreign investors have the opportunity to engage with the Ethiopian market either as service providers within the capital market sector or through direct investments in debt securities and shares, following the guidelines set by the country’s investment laws. He emphasized that foreign participation is crucial for transferring knowledge, empowering local workforces, and alleviating the country’s foreign currency shortages.
Furthermore, the involvement of international investors is expected to bolster Ethiopia’s macroeconomic reforms and enhance foreign investment appeal. The ESE has already implemented several measures to ensure it can efficiently integrate foreign entities into its capital market framework.