The Legal Space for Mobilization of Capital for Investment in Ethiopia: Analysis of the Legal and Practical Challenges in Accessing the New Emerging Alternative Domestic Debt Financing

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Date

2024-11

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Addis Ababa University,

Abstract

Capital mobilization is vital to attain necessary funds for investors to initiate and maintain business, and access to capital is quite instrumental. In this context, debt financing represents the most critical form of finance. However, the traditional modes of debt financing recognized in Ethiopia are not without their problems, hence ineffective. Therefore, the paper tries to look into the status of the country's recognition of the importance of new, emerging alternative debt financing sources in providing more innovative and diversified methods of accessing debt capital. This paper tries to provide insights into the recognition of new, emerging alternative debt financing in Ethiopia by analyzing inefficiency and incompleteness of the already recognized traditional debt financing sources. This would, in particular, analyze the legal constraints that come into play in the context of recognition regarding these innovative sources of finance in the Ethiopian landscape.

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Keywords

Domestic Sources of Capital Mobilization, Traditional Debt Financing, New Emerging Alternative Debt Financing

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