Is Ethiopia Ready to Institute a Stock Exchange Market? Assessment on Establishing Stock Exchange Market in Ethiopia
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Date
2015-01
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Addis Ababa University
Abstract
Ethiopia has a growing economy which needs investment on a continuous basis for new ventures
as well as for expansion and modernization of existing productive capacity. And, to sustain the
annual GDP growth, the country needs new investments, in other words, it needs capital to
invest. Capital markets provide one means to raise capital, as capital markets mobilize savings of
investors. Therefore, capital markets are essential for the country’s overall economic growth.
Despite this, the country does not have an established stock exchange market although the need
for capital market development has been continually discussed by various groups/stakeholders
and academics.
This research project assesses Ethiopia's current condition with regard to establishing stock
exchange market in terms of institutional, legal, regulatory, technical, economic, financial and
other factors and found that the reluctance of the government, inadequate laws and regulations,
insufficient technological infrastructure, and low level of public awareness and trust as important
factors that need to be addressed to have an efficient stock exchange market in Ethiopia.
Key Words: Stock Exchange Market, Ethiopia
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Keywords
Stock Exchange Market, Ethiopia