In order to start the capital market, it has been announced that the process of purchasing financial documents from foreign companies is being completed.
After the establishment of the Ethiopian Capital Market Authority, the Ethiopian Securities Exchange (ESX), which is being established, is said to be selected and evaluated by a foreign institution that will develop the Internet infrastructure that will enable it to carry out its trading activities.
This was announced by the United Nations Economic Commission for Africa with partners on Thursday, June 29, 2015. He is at the Capital Markets Capacity Building Workshop held at the Radisson Blu Hotel. Representatives of the authority, the National Bank and foreign institutions supporting the capital market were present at the forum.
The Capital Market Establishment Proclamation stipulates that the Central Securities Depository (CSD) is a place where financial documents are stored in a consistent manner and converted to electronic, and where financial documents are traded and paid and delivered without physical transmission.
Wineshet Zeberga, a representative from the National Bank, said that having a strong Internet infrastructure is important for transferring ownership and marketing. The development of the infrastructure in Ethiopia’s capital market, he said, “will help us strengthen what we have been lagging behind in.”
“With the support we received from FSD Africa and with stakeholders such as the capital market authority and the securities market, we are working hard to have the infrastructure,” he said.
According to Tilahun Kasahun (Dr.), the senior project manager of the Ethiopian document Muale Newaiyo market that is being established, the selection of the institution that will develop the system has been completed and the stakeholders are conducting an evaluation.
Tilahun (Dr.) added that the evaluation which is being conducted by the National Bank, the authorities and the market will be completed in the next month and the selected institution and full information will be made public soon.
It is known that the Financial Sector Deepening Africa (FSD Africa) office, which is based in England and works on financial issues in various African countries, has provided financial support for the purchase of the infrastructure.
FSD Africa’s capital market specialist, Victor Nkirim, told a reporter how much the purchase was, and said that the contract will be announced and the purchase process is being finalized.
“Currently, a general evaluation of the structure and operation is being evaluated by the National Bank,” Victor added.
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