The Ethiopian government is busy establishing a local capital market after a long deliberation. A lot of initiatives are underway to complete the plan. This is probably one of the few shifts the new government has taken from the old revolutionary democrats.

A capital market is another form of financial intermediation, like banks, to supply the necessary finance for economic investments. In some instances, however, it takes a different route than banks; it thrusts into investments that are too risky and too long for commercial banks.

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