• To commence operation in January
ADDIS ABABA – The Ethiopian Securities Exchange (ESX), which sought to promote public private investment undertakings, set to officially start its operation in January 2025.
Briefing the media yesterday, ESX’s CEO Tilahun Esmael (PhD) stated that the exchange has finalized all the preliminary activities to jump into full-fledged securities exchange operations which are highly believed to promote inclusive, cost effective fast financial literacy and participation in the country’s growing business ecosystem.
The CEO also highlighted that it helps to create a fertile playground for public-private investment, businesses and the overall development of a vibrant capital market which in turn contributes to the nation’s economic development.
“The development of the existing and emerging financial industry has brought a golden opportunity for their seamless operations,” he said.
Over the last few months, corporate bond instrument activities have been taking place to incorporate the Over the Counter (OTC) market and other chores in a bid to promote private sectors and enterprises participation in the market, Tilahun remarked.
Mentioning the improvements registered in the government’s Treasury bill, he elaborated that Ethio-telecom’s 10% share offer would be a vital springboard for the progress of the exchange.
Urging the business communities and keen participants to fulfill the requirements which enable them to be involved in the market, Tilahun cited the inclusion of Sharia compliance services for profit sharing.
The Exchange’s Chief Operating Officer Michael Habtie stated that they have been mobilizing funds, establishing directives, restructuring human resources and raising awareness to the general public.
Aside from operational activities, Michael further stated that the exchange has been undertaking legal framework, human capacity building training, trading technology installations to facilitate bond and stock markets.
In addition to technological advancements, the exchange has been mobilizing capitals, working on human capital and other business operations. Also, risk management framework, cyber security issues are impelled to mitigate the possible risks occurring while operating, the COO added.
Unveiling the significant achievements gained from the bank-to-bank services, Treasury bills, pension funds, and stock exchange market are on the pipeline to be operational in a few weeks on.
It was also indicated that chains of forums along with universities, chambers, associations and investor related trainings have been offered. It is also proposed to deploy the ESX digital academy system to raise awareness, reach out to all segments of the community in the investment undertakings.
Since establishment last year, ESX has been operating under the provisions of the Capital Market Proclamation No. 1248/2021, which facilitates cooperation between joint stock companies and the private sector, it was learnt.
BY ASHENAFI ANIMUT
THE ETHIOPIAN HERALD SATURDAY 14 DECEMBER 2024
