ADDIS ABEBA – Prime Minister Abiy Ahmed’s cabinet has endorsed on Tuesday a draft regulation that will create Ethiopia’s first stock market.
The East African nation is among the top economies in sub-Saharan Africa but doesn’t have a stock market. Since Abiy came to power in 2018, the country has pursued economic reforms, including opening up telecom sectors.
The bill, drafted by the National Bank of Ethiopia, could now lead the country to have its own stock market as the country’s private sector starts to emerge.
The draft law was among the three draft documents that were the subject of Prime Minister Abiy’s cabinet meeting on Tuesday.
“We’ve endorsed the establishment of a stock market,” Prime Minister Abiy said, following, what his office said, a detailed discussion over the document.
After making some changes to it, the bill has been sent to the lower house of the Ethiopian parliament, where it will get final ratification.
The Ministry of Finance expected for the law to come into effect before the end of the ending year with the state minister Eyob Tekaligh told Bloomberg in June that the country is “on a good track to commence the implementation.”
“As we are at a stage where a vibrant private sector is starting to emerge, we have companies that are ready to be listed in the stock exchange,” Eyob added.
Meanwhile, the council of ministers has also endorsed a draft regulation providing for an insurance mechanism for bank deposits as well as the amended the defense forces proclamation with a view to strengthen the Ethiopian National Defence Force [ENDF].
Both documents have been directed to the lower house of the Ethiopian parliament.