ADDIS ABABA, July 7 (Xinhua) -- Ethiopia's first-ever securities exchange will be a "game-changer" for the country and the region, the United Nations Economic Commission for Africa (UNECA) said at a workshop that concluded Friday.
Efforts are underway to develop Ethiopia's financial market as the East African country prepares to launch its first-ever securities exchange over the next two years. The project team of the Ethiopian Securities Exchange (ESX) launched the capital raises request in May, according to the official Ethiopian News Agency.
While addressing a workshop on Ethiopia's financial market Thursday, acting Executive Secretary of the UNECA Antonio Pedro stressed the importance of inclusivity, sustainability and connectivity to harness the platform's full potential.
The two-day workshop brought together representatives from the public and private sectors, potential investors, policymakers and regulators, who discussed how to strengthen the capabilities of key market participants, prepare potential issuers and investors for the ESX portfolio of instruments, and garner support from key policymaking institutions and regulators.
The workshop was jointly organized by the UNECA, the Ethiopian Investment Holdings, the ESX, and Financial Sector Deepening Africa, the UNECA said in a statement issued late Thursday.
Pedro reaffirmed the UNECA's commitment to supporting African countries in their socioeconomic development and expressed enthusiasm for partnering with Ethiopia on the "groundbreaking" financial market initiative.
Michael Habte, ESX project manager, said as a pioneer securities exchange and market organizer, the platform will "play a critical role in the development and growth of the Ethiopian capital markets."
Habte said the ESX will deploy an electronic trading platform for the equity and fixed-income markets as well as an innovative alternative capital market that caters specifically to up-and-coming small- and medium-sized enterprises. He underscored the importance of promoting the accessibility of the market to issuers and investors in Ethiopia and abroad, including Ethiopia's large retail and diaspora investor base.
"A thriving, deep and liquid Ethiopian capital market will require the full support of valuable development partners to realize the catalytic development impact of a modern securities exchange as we embark on the launch of the Ethiopian capital markets," said Habte.
Brook Taye, director-general of the Ethiopian Capital Market Authority (ECMA), said the ESX will serve as a "key part of a functioning Ethiopian capital market ecosystem."
"The ECMA is fully committed to supporting the launch of the ESX and will work closely with the ESX team as it becomes a full-fledged securities exchange over the next year," the statement quoted Taye as saying.
The capacity-building workshop addressed a wide range of topics, including the money market, fixed-income market, equity market, policymaking and market development.
