BY ZEKARIAS WOLDEMARIAM
Ethiopia is implementing series of reform measures to grow its economy through free market. So far the government has taken good steps forward to enhance the private sectors role in the economy. Accordingly investment in the manufacturing industry, hotel and tourism among others is progressing smoothly. Along with this efforts are underway to prop up the growth of the fledgling finance sector. In addition to bringing more local private banks in the industry the government is also ready to allow foreign banks in the country. Furthermore as the need for more fiancé is growing preparations are under way to launch capital market in the country. As capital market is a novel sector in the country, it is important to build capacity of human resource in advance. As a responsible government agency, national bank of Ethiopia (NBE) has been partnering with AAU and CISI to train experts in private banks.
Abbie Cornish is a chief international executive of CISI. The Ethiopia Herald had a brief stay with her to highlight on capital market and the need to build human resource ahead of launching capital market in Ethiopia. Have a nice read!
To start with, could you introduce us yourself first?
My name is Abbie Cornish. I am International Executive at the CISI, which is more formally known as the Chartered Institute for Securities and Investment. CISI is a not for profit organization. It was formed out of the London Stock Exchange in 1992, and has since dedicated its work to professionalism and developing the financial services sector across the globe.
So we have a very large international footprint, we don’t just work in Africa, we have international offices, in the Middle East, in Spain, in India, Sri Lanka, the Philippines and Nairobi. There’s about eight of them, we have in Ireland and China, and other international representation. So we work in a lot of different markets. The work we do is pretty much the same, but it can depend on , what stage the market is at, whether it’s in the emerging stage of the developing stage, or if it is already quite developed. So we are a qualifications body, we create all of our qualifications in house designed by practitioners for practitioners ultimately.
And it’s not just the capital markets sector that we serve, we also have qualifications in wealth and investment management, risk and compliance, sort of back office, middle office, the operations side of the finance sector, financial planning, which is quite UK focused at the moment. And more recently, we’ve been developing our green and sustainable finance pathways as well, with the margins of 26. And, it’s not the high on everyone’s agenda at the moment, and the financial services industry really needs to move along with that. So we developed a new pathway to cater to the responsible investing, green washing ESG, related themes. That’s the qualification side, we believe that qualifications is gaining the initial competence for somebody to do that job.
But we are also a membership body and a professional body of choice, for the financial services sector. So, for our membership offering, we provide a whole host of resources, basically, that helps professional practitioners, continuously develop their skills, and demonstrate a dedication to professional development throughout their entire career. So, gaining the certificate is just the first step. But, you must continue, the financial services sector is always evolving, so it’s keeping up to date with the latest trends and advancements, maintaining regulatory compliance, and just showing a dedication to improving your skills constantly. So CISI has a host of, over 200, professional refresher modules, short e-learning courses; we have an international webinar programs for events, I’m very happy to be working in Ethiopia.
How long has CISI been working in Ethiopia?
So see, I started working with the National Bank of Ethiopia in 2020. It was around the time that the proclamation was starting to be developed for the capital markets. So we sort of formed a partnership approach FSDA for funding, originally was to build capacity within the National Bank and the Capital Markets team there. And then that later developed, realizing, that we had to build capacity within the wider capital markets, ecosystem or future ecosystem. So we done a fully funded scholarship program sponsored by FSD Africa.
What about capital markets? How do you see capital market as Ethiopia is bracing to establish capital markets? How do you see the future?
I think it’s an exciting time for the country, finally sort of opening the doors to foreign banks, and the introduction of capital markets will directly increase foreign direct investment, thus bringing, more money into the country and fast tracking its development. I think that, we’re in a very early stage, still, the work that we’ve been doing is foundational training, and it’s really building that initial capacity. My priority now is to ensure the sustainability of the work we’ve done so far. This has been a scholarship program, so it’s been funded. Now what we really need to do is start building awareness, and sensitizing the market players. So the banks, the institutions, the organizations, that will be, they really need to get on board to push this agenda forward. And I think that and the conversations I’ve been having an out here is about increasing awareness, basically, what the banks’ role will be in the capital market, and ensuring that they’re knowledgeable about what’s to come.
What is your plan to further engage in building human resource capacity here in Ethiopia?
So that’s yeah, the purpose of the trip really was obviously to host this award ceremony, inaugural event in Ethiopia, our first ever one CISI event, to celebrate the success, of the professionals who’ve gone through the certification training. But, next steps, we’ll continue to work with the National Bank and capital markets implementation team to further introduce certification training in Ethiopia. And, look constantly to see how and what more we can be doing to help develop the financial services sector and the capital markets.
What is the purpose of giving the exam on investment and securities?
So what we’ve done, as sort of the primary exam is introducing Securities and Investment. So that’s, the perfect starting exam for especially such a young sector, where there’s no capital market, knowledge on the capital markets is very slim. So having that initial introduction exam is crucial in other markets, and for experience, and what we probably would look to replicate here, obviously, that it’s down to the regulator, the CISI, just to be clear, it’s not, it doesn’t have any influence over the capital markets implementation team or the regulations, we listen to them what they want, what they need, and will support and help them in delivering that through our qualifications. But in other markets, what we’ve done in Kenya, and probably the East Eastern African countries is formulate a licensing pathway, which would be the international introduction exam, a regulatory exam. And then the final paper would be subject to the job role or job function.
So if somebody’s going to operate on the capital markets, they would take the level of free securities certificate exam, if people are going to then move on into sort of the investment management and more holistic side of investment where you’re client facing and you’re managing other people’s money, you would probably look to take the international certificate in wealth and investment management, if you’re going to be a compliance professional, you will take a compliance exam. So that final paper really is dependent on what your specific role will be. And that one will be, just determined by your job function ultimately.
The government is also bracing to allow foreign banks in Ethiopia. So do you think that will play a good role?
Yeah. Because the foreign banks, will come and the local banks here need to ensure that they have the capacity and the competency internally. So I think it’s a vital importance that they start sponsoring staff to go through this certification training in advance of the launch of the capital market. Now, I think the time really is now to start thinking about their overall strategy for when and how to market launches , the investment divisions within the banks if they’re going to be developed and start building capacity within their teams internally.
Okay, what about the performance of the trainees?
So, it was excellent, actually, for the primary exam, the International introduction, we had, overall pass rate of around 70% which, if I’m sure exceeded the CISIs general sort of global pass rate which is excellent. I’m better than what people do generally across the globe. I think the introduction to higher level exam the level of free securities, the pass rate was not as was not as successful. And that’s not to say, not today is not a bit. It’s a new concept that we’re introducing here. So, the practitioners don’t have workplace experience, they haven’t done this in their day to day jobs. It’s an entirely new, and this was a huge
step up. So that’s why CISI aims when we work with regulators for experience, we’d like to introduce licensing exams or certifications in a sustainable way to the market, not slowly, but because this one requires a lot more conceptual analysis, you really have to understand the concepts and then apply that to the question that you’re being asked. And I think that’s where a lot of people may have tripped out. But that’s the importance of having training partners.
So CISI exams, you could do them via self-study, you don’t have to go through an accredited training provider like we know we provide workbook, we provide revision, express that can online portal study support, and access to student membership for one year. And that’s a free. So going back to what I said about CISI being a membership body, when somebody sits for their first exam, we give them student membership. I mean, they can utilize all of the resources that we have available to members for free for one year. And it’s an introduction to, a life of professionalism ultimately. The hope would be that, once they finish their professional qualifications, they would then come on board and join us as a member. And I’d be really pleased to start growing a local community here in Ethiopia, with members.
Could you tell me about your overall evaluation of the process and outcome of the training here?
It was a complete honor to be part of this program and this project, it’s such an incredible time, and seeing, being a part of the development of something so crucial as the establishment of a capital market. It’s historic, and I feel very pleased that I’ve been able to work with a Sephora and the National Bank and various other stakeholders and things to help push the agenda forward and build capacity, knowledge really is a key part. So, and CISIs first time ever any VIPs and I’m really happy that it was me that got to thank you.
You are welcome, and I would like to say thank you for your time!
The Ethiopian Herald November 19/2022
