ADDIS ABABA – The promotion of capital market in Ethiopia would drive emerging innovative ideas and startup businesses, officials said, emphasizing its pivotal role towards addressing financial hurdles.
Speaking to the Ethiopian Press Agency (EPA), Innovation and Startups Development Lead Executive Officer Selamyihun Adefris said that introduction of capital market marks a significant milestone to mobilize proficient financial resources which help promote new innovations and startups.
Mentioning the critical financial challenges that the emerging startups have encountered to start businesses so far, he said that this measure would have a valuable role not only to smoothen their financial flow needs but also help accelerate the national economic growth.
Selamyihun also stated that the innovators have been running their businesses through the loan and grants accessed from the government and various organizations to transfigure their innovative ideas into tangible actions.
The progress of the capital market would help advance startups with the cutting-edge technologies and has numerous benefits for the communities, investors and other companies’ stock sharing and facilitates accessible financial capacities, he said.
Moreover, there needs to be a robust security exchange regulatory body that evaluates the profitability and entire operations of emerging startups, he added.
Stating the lengthy bureaucratic processes to get loans from the banking sector, he emphasized that it would also help solve this and other related financial challenges facing startups and stimulate their developments.
Ashwa Technology S.C CEO Daniel Bekele for his part highlighted that the commencement of capital market in the country marks a significant step in promoting problem solving innovative startups financial capability and improving productivity.
According to the CEO, the developments of startups bring a lot of opportunities not only for investors but also for the country’s thriving future.
Sharing the above justification, Daniel said that this measure will help address their financial limitations and serve as a springboard to transform to the next move.
“As most startups are driven by the youth, it helps change their theoretical knowledge into practical skills through sustainable financial provisions thereby transforming their profile to the national and international level. Consistent financial provisions are required as a huge number of startups are emerging and it is crucial to support the capital market.”Daniel said.
They recommended startups to pay attention and make preparations to fully leverage the latecomer advantage wisely.
BY ASHENAFI ANIMUT
THE ETHIOPIAN HERALD SATURDAY 28 DECEMBER 2024
