In a landmark move set to reshape Ethiopia’s financial landscape, EthioTelecom is gearing up to become the inaugural company listed on the equity side of the Ethiopian stock exchange. Dr. Brook Taye, in an exclusive interview with Business Daily Africa, disclosed that EthioTelecom plans to offer 10% of its stake to the public, marking a significant stride towards opening up ownership to the broader populace.
Dr. Brook, the director general, shared compelling insights into the evolving capital market landscape of Ethiopia. Emphasizing the country’s late entry into the capital market arena as an advantage, he highlighted the opportunity to glean valuable lessons from the experiences, both successes and pitfalls, of other nations.
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The interview shed light on the integration of cutting-edge technological advancements into Ethiopia’s capital market infrastructure. Dr. Brook revealed that the acquisition of a central securities depository system has been concluded, with implementation poised to commence imminently, promising a live go-test scenario within two months.
Furthermore, the authority overseeing the development disclosed that it has received ten bids from foreign service providers for the deployment of monitoring and automated trading systems, underlining the commitment to embracing global best practices.
Addressing the pricing mechanism for debt instruments in the absence of a yield curve, Dr. Brook indicated that the market would dictate the pricing, fostering transparency and market-driven valuations.
In a nod to the pivotal role of local investors, Dr. Brook underscored the significant contribution expected from retail investors and the diaspora, drawing parallels to the enthusiastic participation witnessed in the private banking and insurance sectors. Foreign investors were encouraged to approach Ethiopia with a long-term perspective, prioritizing sustainable growth over short-term gains.
In a notable development, a Kenyan investment advisory firm is in the advanced stages of the application process to become the first intermediary in the market, signaling early interest from regional players.
Dr. Brook also addressed regulatory considerations for startups eyeing a listing on the exchange, highlighting the flexibility of regulations to accommodate even companies in their formative stages, provided they demonstrate robust projections, leaving investment decisions to market participants.
With anticipation mounting, the Ethiopian stock exchange is slated for launch later this year, heralding a new era of financial inclusivity and opportunity in the Horn of Africa.
