ADDIS ABABA — Ethiopia’s long-awaited securities exchange is set to commence operations this October, marking a significant milestone in the government’s ongoing efforts to liberalize the nation’s tightly controlled economy.
The announcement was made by the exchange’s chief executive, Tilahun Esmael Kassahun, in a statement carried by state-affiliated media on Thursday.
The establishment of the exchange is a cornerstone of Prime Minister Abiy Ahmed’s broader economic reform agenda, aimed at attracting private investment and reducing state dominance in key sectors.
“All necessary human resources and technological infrastructure will be in place by October,” Tilahun said, according to Fana Broadcasting Corporation.
The creation of the securities exchange is part of a broader shift in Ethiopia’s economic policy, which has historically been characterized by heavy state intervention.
Since taking office in 2018, Abiy has championed a series of economic reforms designed to open up Ethiopia’s economy to private and foreign investors.
These reforms have included the partial privatization of state-owned enterprises, a move that has been met with cautious optimism from investors.
In February, Abiy announced that the government was in talks to sell a 10% stake in Ethio Telecom, the state-owned telecommunications giant, via the upcoming exchange. Ethio Telecom, which had enjoyed a monopoly in the telecommunications sector, saw its dominance challenged when a consortium led by Kenya’s Safaricom was awarded the country’s first private telecoms license, beginning commercial operations in 2022.
Ethiopia’s economy, long shaped by its command economy past, continues to face challenges as it transitions towards a more market-oriented model.
The government’s recent decision to float the national currency, the birr, in July is seen as a critical step towards securing financial support from the International Monetary Fund and advancing long-delayed debt restructuring efforts.
The upcoming launch of the securities exchange is expected to further bolster investor confidence, signaling Ethiopia’s commitment to modernizing its financial sector and integrating more fully into the global economy.
However, the success of this initiative will depend heavily on the government’s ability to navigate the complex dynamics of economic reform in a country where state control has long been the norm.
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