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The chief executive of Ethiopia’s securities exchange announced that operations are set to commence in October, according to state-affiliated media on Thursday.
The creation of a bourse is a significant step in Prime Minister Abiy Ahmed’s initiatives to encourage economic liberalization in a nation that has previously been subject to strict state regulation. This move aims to attract more private investment and foster a more dynamic business environment.
According to Fana Broadcasting’s report, according to the CEO of the bourse, Tilahun Esmael Kassahun, all necessary technological and human resource requirements will be in place by October.
Abiy mentioned in February that the government was engaged in discussions regarding the sale of a 10% stake in state-owned telecoms company Ethio Telecom through the stock exchange.
Ethio Telecom previously held a monopoly until a consortium led by Kenya’s Safaricom successfully obtained the country’s first private telecoms license and commenced commercial operations in 2022.
Ethiopia’s economy has been dealing with the consequences of being a command economy for many years. However, Abiy’s efforts since 2018 to increase private sector participation have been remarkable, surpassing previous attempts to promote openness.
In late July, Ethiopia took the necessary step of floating its currency in order to secure International Monetary Fund support. This move was crucial in paving the way for the much-awaited debt restructuring process.
Due to a decline in technology shares and worries about weak demand in a 10-year Treasury auction, U.S. stocks closed in the red on Wednesday.
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