ADDIS ABABA – The development of a well-functioning stock market in Ethiopia would be a significant breakthrough for the developments of livelihoods and the country’s economic growth, scholars in the area said.
Hawassa University Economics Teacher Wudassie Dereje (PhD) told the Ethiopian Press Agency (EPA) that the capital market would be an ideal platform that bridges individuals and investors to buy and sell equity and debt instruments companies to raise long-term funds through stock and bond sales.
He said: “The capital market ecosystem would be a great opportunity and open rooms for financial assets at all levels of stock ownerships thereby promoting financial inclusion and resilience among stakeholders.”
He has also pointed out that the well-functioning capital market in the country would play its role on market liability. Here, the government should be the forefront responsible actor to build trust and safeguard the seamless progress and functioning of the system through various mechanisms.
Seconding the above rationale, Hawassa University Business and Economics College Dean and Economics Department Researcher Wogene Markos (PhD) for his part underscored that stock market would be a paramount significance to beefing up financial literacy capacities and collecting financial resources to address national financial crunches.
Although stock market is at the infant level in the country, it is witnessing good progress and it would be a promising latecomer advantage for the community and the country at large, Wogene highlighted.
Wegene (PhD) also emphasized the need to create awareness as it is vulnerable to fraudulent issues and stressed the government should strictly control the market and install technology-wise mechanisms to tackle possible maladministration.
On the other hand, Zemzem Bank Digital Service and Transformation Director Nejib Ahmed stated that this would be an ideal platform enabling those who are keen to engage in the capital market ecosystem to explore investment to run business and help them access financial services.
According to the director, an effective stock market opens gates not only for local but also for other investors outside the country to invest in the market. Similarly, the opening of the market will be an impetus for international investors to invest in the market.
“These days, it becomes a normal trend for people to keep all amounts of money in banks with limited interest rate; therefore it is decisive for the people to invest their money in the stock market to benefit more and build a sense of ownership.”
Furthermore, it is also important for the government to install digital technologies to facilitate income collection and control fraud related shortcomings, he emphasized.
The commended the government to prioritize awareness creation for investors to promote financial literacy activities and build trust among investors to help promote
BY ASHENAFI ANIMUT
The Ethiopian Herald May 28/2024
