Timing of Financial Liberalization Perfect to Realize Ethiopia’s Growth Ambitions: Kenyan Expert

Addis Ababa July 28/2023(ENA):- The timing of Ethiopia’s financial sector liberalization is perfect with the benefit of taking advantage of all the experiences from other markets, Kenyan Capital Market Expert Akinyemi Awodumila said.

In an exclusive interview with ENA, Awodumila said the role the financial services plays is crucial for the banking sector in particular not only as intermediaries but also agents to the broader economy.

According to him, liberalization of the sector is a big deal in terms of how the country choose to progress from a sustainable financial perspective.

When you look at the capital markets and regulators, what Ethiopia is doing is brilliant because one of the things you find the market requires is trust, the Kenyan expert noted.

Awodumila thinks that the good thing for Ethiopia as a country is it has the benefit of taking advantage of all the learning from other markets and other regulators.

“That just means they are able to leapfrog and actually move faster and build all the required success elements for their ecosystem to work well for the good of the economy over the short and long-term. So, it is brilliant and perfect timing.”

He also pointed out that the economy and the people of Ethiopia are going to benefit immensely from the liberalization approach that already incorporates sustainability at the heart of everything they are doing.

Financial Sector Deepening Africa (FSD Africa) Senior Capital Market Specialist Vimal Parmar said that Ethiopia has a lot of opportunities both from strategic perspective and also its diversity in terms of the large population and natural resources.

If the right kind of partnerships and initiatives are taken, financial sector liberalization will attract capital into the country that will lead to development of both private capital and public capital, he elaborated.

Recall that Ethiopia has been undertaking massive economic reform to liberalize critical markets, including the financial sector, in a bid to attract foreign investment.

Among others, the nation has issued Capital Markets Establishment Proclamation in 2021 to provide the legal foundation for the development of capital markets in the country, and several activities have been carried with a view to create conducive environment for its implementation.

Financial sector liberalization is part of Ethiopia’s economic reform with the main objectives to improve mobilization of domestic resources for investment and to attract capital into the country.

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