• Privacy Policy
  • Terms
  • About us
  • Contact Us
  • Staff Email
Friday, June 6, 2025
  • Login
TheMattersPress
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
TheMattersPress
No Result
View All Result
Home Economy/Technology

Ethiopia opens up to foreign investment firms ahead of capital market launch

Ethiopia

The Matters Press by The Matters Press
January 19, 2024
Reading Time: 2 mins read
0
Edo unveils plans for investment desks

Nairobi, Jan.19, 2024: Ethiopia is set to issue licences to let foreign investment banks operate in the country.

RELATED POSTS

PDP incubated insecurity in Nigeria, but Tinubu on top of the situation – TDF

FCT ground rent!: Check your name if you own property

Cracking the Code with Africa’s Creators: Woof Studios Makes History at Cannes Lions 2025 CANNES,

This is a key step ahead of its planned launch, later this year, of a securities exchange, an official, Brook Taye said.

The liberalisation initiative attracted foreign investors such as Kenyan telecoms operator, but faced recent setbacks due to what some analysts described as an unpredictable regulatory environment, security concern, and macro-economic instability.

The justice ministry authorised the capital market regulator, this week, to go ahead with issuing the licences, according to Brook Taye, Director-General of the Ethiopian Capital Market Authority.

The move is part of a drive by Prime Minister Abiy Ahmed, since 2018, to open up the country of 120 million to greater private investments.

Ethiopia’s economy is still heavily controlled by the state, a legacy of being a command economy for decades.

The shift by Abiy Ahmed toward a more private sector involvement was notable for being more ambitious than previous attempts at opening up.

There are currently no investment banks in Ethiopia, and commercial banks are only able to offer limited funding to businesses due to prudential requirements.

The director-general said that the demand for capital-raising services was “huge” because businesses were paying 25% interest on commercial bank funding, and had to provide collateral worth 70% of the value of the loan.

“This is the biggest bottleneck in the Ethiopian economy, There is no optimal way to raise capital,” the official said.

The regulator is offering licences to global and regional investment banks, securities brokers and dealers.

This also involves credit rating services providers who can help businesses list shares on the securities exchange and issue corporate debts, said the official.

“The exchange would launch sometime this year and would enable the government to plug its budget deficit by offering debt securities to retail investors,” the official added.

Zemen, an Ethiopian commercial bank, will be among the owners of the exchange after its commitment to buying five per cent of the shares last week, according to the official.

The Horn of Africa nation is facing acute foreign exchange shortages and high inflation.

It defaulted on its one billion dollars international bond last month after failing to make 33 million dollars coupon payment.

Tags: Ethiopia
ShareTweetPin
The Matters Press

The Matters Press

Related Posts

Energy

PDP incubated insecurity in Nigeria, but Tinubu on top of the situation – TDF

June 4, 2025
Property owners besiege FCT office to pay ground rent
Economy/Technology

FCT ground rent!: Check your name if you own property

June 3, 2025
News

Cracking the Code with Africa’s Creators: Woof Studios Makes History at Cannes Lions 2025 CANNES,

June 3, 2025
Economic implications of Niger coup to Nigeria, ECOWAS
Economy/Technology

IMPI urges media to consider national interest in reporting security challenges

June 3, 2025
Tinubu steering Nigeria away from Venezuela-like tragedy – IMPI
News

Malami’s opposition to Tinubu’s endorsement self-indicting – TDF

June 3, 2025
President Tinubu outlines new economic, monetary, foreign policies
Economy/Technology

CUPP goofs over President Tinubu’s 2027 endorsement by governors

June 2, 2025
Next Post
NBS reports increase in Inflation

LCCI advises on prudent fiscal measures, friendly tax policies to tame inflation

Nigeria, nine others fail to sign air market deal

Turkish Airlines contributes $56bn to economy in 2023

Recommended Stories

Politics hampers NSE in 2018

Latest global stock market indices

May 18, 2023
IMF’s reasons for Nigeria’s economic recovery

IMF urges policymakers to `act now’ to address global crisis

October 14, 2022
Food shortage: Nigeria bans foreigners from direct purchase of produce from farmers

ActionAid, others urge Nigeria to create emergency fund to avert food crisis

November 14, 2022

Popular Stories

  • Rising prices of goods cause protests in Morocco

    Rising prices of goods cause protests in Morocco

    0 shares
    Share 0 Tweet 0
  • NLNG not responsible for gas supply shortfall, price hike

    0 shares
    Share 0 Tweet 0
  • NCC sets fresh operational fees, spectrum prices for telecom operators

    0 shares
    Share 0 Tweet 0
  • Hoarding causes hike in prices of grains

    0 shares
    Share 0 Tweet 0
  • Prices of Petrol, diesel increase in November

    0 shares
    Share 0 Tweet 0
TheMattersPress

We bring you the best news update in Nigeria

LEARN MORE »

Recent Posts

  • PDP incubated insecurity in Nigeria, but Tinubu on top of the situation – TDF
  • FCT ground rent!: Check your name if you own property
  • Cracking the Code with Africa’s Creators: Woof Studios Makes History at Cannes Lions 2025 CANNES,

Categories

  • Agriculture
  • Economy/Technology
  • Energy
  • Entertainment/sports
  • Features
  • Foreign
  • Multimedia
  • Natural Resources
  • News
  • Oil and Gas
  • Photo
  • Politics
  • Security
  • Thematterspress
  • Uncategorized
  • Video

© 2025 Domo Tech World - Powered by Thematterspress.

No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us

© 2025 Domo Tech World - Powered by Thematterspress.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Call Us