The Ethiopian Capital Market Authority (ECMA) has announced the issuance of a groundbreaking directive that will enable the licensing of the first securities exchange in Ethiopia.
The authority has prepared and registered the “Directive on Licensing, Operation, and Supervision of Securities Exchanges, Derivatives Exchanges, and the Over-The-Counter Market No. 1009/2024.” This directive has been officially registered by the Ministry of Justice of the Federal Democratic Republic of Ethiopia and takes effect today.
This comprehensive directive outlines the necessary documentation, related terms, and requirements for obtaining a license to operate exchanges and over-the-counter markets. It sets forth a supervisory framework for exchanges, mandates the approval of internal regulations by the authority, and details reporting obligations and various standards governing the process.
It enables both government and private companies to utilize the market for selling shares and bonds, thereby creating a conducive environment for raising capital and undertaking significant projects. Additionally, it establishes a transparent and controlled trading system for service providers with market licenses to buy and sell securities.
By consolidating the previously fragmented securities trading in Ethiopia into a single, licensed, and regulated market, this directive enhances the sector’s contribution to stakeholders and the national economy. It also paves the way for the Ethiopian Securities Exchange S.C. to commence operations by granting an exchange license.
