ADDIS ABABA – Ethiopian lawmakers have unanimously approved the Proclamation for the Establishment of Capital Market during their regular session on Thursday.
The law will create a market where investors meet fund seekers, thereby facilitating better returns for investors who provide cash for companies and businesses that exhibit viable returns.
It will also pave a way for the creation of a Capital Market Authority, a regulatory body with seven seven board members, including the Governor of the National Bank of Ethiopia.
The Authority, which will be accountable to the Prime Minister, will be tasked to protect investors and creating an enabling environment for long term investments.
Revenues, Budget and Finance Affairs Standing Committee Chairperson, Yayesh Tesfahunegn said capital market will serve the public as an alternative means for saving.
It will also have a significant impact on supporting large government and private investments, besides reducing dependency on foreign aid, according to Yayesh.
Meanwhile, the House also approved a Proclamation for Federal Subsidy Budget and Distribution of Joint Revenues with a majority vote.
The proclamation, officials say, will enable a fair distribution of joint revenues.
He added that it will also ensure transparency and fairness in the distribution system.
During the same session, the lawmakers have approved the Proclamation for Licensing and Administration of Legal Services, unanimously. The law will help citizens obtain proper legal advice, according to officials.