Capital PoliciesIt is in this environment that the government is seeking to establish a capital market for the government, businesses, and individuals to buy and sell securities, such as bonds, stocks, and derivatives. The National Bank of Ethiopia’s 2021 Capital Markets Proclamation proposed a ten-year implementation plan structured around four pillars: market development, capacity development, infrastructure development, and policy reviews. The law established the Ethiopian Capital Market Authority and led to the creation of the Ethiopian Securities Exchange in late 2022 under the supervision of the Ministry of Finance and guidance of FSD Africa. Risk SkillsAnother serious constraint the Ethiopian government faces in its attempt to create and maintain a capital market is the relative lack of skilled financial risk professionals. This might indeed be the case, yet, as argued above, the harmful potential of an ill-implemented capital market could increase volatility.

Source: Ethiopian News July 28, 2023 08:57 UTC