Ethiopian Capital Market Authority (ECMA) Introduces Directive to License First Securities Exchange











Addis Ababa, Ethiopia, July 16, 2024 – The Ethiopian Capital Market Authority (ECMA) has announced the issuance of a groundbreaking directive that will facilitate the licensing of the first securities exchange in Ethiopia. This significant development marks a milestone in the evolution of the country’s financial sector, poised to enhance the capital market’s contribution to economic growth.

The ECMA, an autonomous regulatory body established under Proclamation No. 1248/2021, has been empowered to issue directives in alignment with Article 108 of the proclamation. This directive, titled “Directive on Licensing, Operation, and Supervision of Securities Exchanges, Derivatives Exchanges, and the Over-The-Counter Market No. 1009/2024,” has been registered by the Ministry of Justice of the Federal Democratic Republic of Ethiopia and will come into effect on July 16, 2024.

This comprehensive directive outlines the documentation, terms, and requirements necessary to obtain a license for operating exchanges and over-the-counter markets. It establishes a supervisory framework for these exchanges, detailing the internal regulations, reporting obligations, and standards governing the process.

For the first time in Ethiopia, this directive will enable the licensing of securities and over-the-counter markets. This move is expected to create a conducive environment for raising capital, supporting significant projects, and establishing a transparent and controlled trading system for service providers with market licenses to buy and sell securities.

Moreover, this directive consolidates the previously fragmented securities trading landscape in Ethiopia into a single, licensed, and regulated market. This integration is anticipated to enhance the sector’s contribution to stakeholders and the national economy. It also paves the way for the Ethiopian Securities Exchange S.C. to commence operations by granting an exchange license.

The ECMA’s mandate includes fostering the development and regulation of the capital market within Ethiopia, aiming to enhance investor confidence, facilitate capital mobilization, and promote sustainable economic growth through robust regulatory frameworks and strategic initiatives.

For more information or to access the full directive, please visit the ECMA website at ecma.gov.et.

About ECMA:

The Ethiopian Capital Market Authority (ECMA) stands as a pivotal institution mandated to foster the development and regulation of the capital market within the Federal Democratic Republic of Ethiopia. Established under Article 3(1) of the Proclamation, the ECMA operates as an independent regulatory body with its own juridical identity, reporting directly to the Prime Minister of Ethiopia. Embracing a multifaceted approach, the ECMA is committed to enhancing investor confidence, facilitating capital mobilization, and promoting sustainable economic growth through robust regulatory frameworks and strategic initiatives.

For inquiries and additional information, please contact:

Saron WoldegabrielHead of CommunicationsPhone: 011-5-57-81-62Email: [email protected]

For more information, please visit ecma.gov.et.