A Step in the Right Direction?
Establishing a stock market has been a hot issue under discussion in Ethiopia for almost two decades. While some argue that there is a need for a capital market, citing the existing shortage of finance both in local and hard currencies, others disagree, mentioning the immature financial reporting and fragile corporate governance systems, absence of the required legal framework, and a very weak private sector. Meanwhile, the government’s position is firm: setting up a stock market in no less than a year, if possible, before the end of 2020. EBR’s Samson Berhane investigates to find out whether the country is ready to institute a stock exchange.