Nairobi, Kenya – Frank Mwiti, CEO of the Nairobi Securities Exchange (NSE), recently highlighted the significant impact of Ethiopia’s new capital market ecosystem on East Africa’s economic landscape. The establishment of the Ethiopian Securities Exchange is viewed as a crucial step towards enhancing regional economic integration and growth.
According to Ethiopian News Agency, the efforts by Ethiopia to develop a fully-fledged capital market, including the creation of the Ethiopian Securities Exchange, represent a substantial commitment to economic liberalization and an invitation to foreign investment. “We commend the government of Ethiopia for not just setting up the capital market sector. They created the Ethiopian Securities Exchange and the entire ecosystem around that,” Mwiti stated. He further emphasized the potential of Ethiopia’s economic strength to bolster growth throughout the East African region.
The CEO expressed enthusiasm about the opportunities the new market structure in Ethiopia presents for regional economic enhancement, including for Kenya. Mwiti also outlined the NSE’s role in fostering a sustainable East African capital market ecosystem, focusing on capacity building, deepening local markets, and harmonizing policies. Key strategies include increasing the involvement of local actors, enhancing the accessibility and affordability of market participation, and reducing reliance on foreign capital.
Mwiti also stressed the importance of aligning policies and regulations across East African nations to facilitate smoother transactions and attract investments. Additionally, he underscored the need for professional training within the region to support the functioning of securities exchanges.
The NSE, established in 1954 and the largest exchange in East and Central Africa by market capitalization, serves as a model for the Ethiopian Securities Exchange. Mwiti’s remarks underscore the broader vision of a connected and economically robust East Africa, bolstered by collaborative efforts in financial sector development.