Addis Ababa:Citizen participation in Ethiopia's capital market is on the rise, with more investors opening accounts and trading securities. Hana Tehelku, Director General of the Ethiopian Capital Market Authority (ECMA), highlighted this development as part of the Homegrown Economic Reform Agenda's success.
According to Ethiopian News Agency, Hana emphasized the importance of the national capital market's development, which provides new investment opportunities for citizens and supports the expanding financial sector. The ECMA has been crucial in establishing a transparent and secure regulatory framework since its inception as part of the country's economic reforms.
Hana pointed out that over the past two years, the ECMA has shown that a capital market can effectively operate in Ethiopia. The Authority currently oversees 26 registered companies, including seven in the securities market.
The modernization of the market is advancing rapidly, with approximately 187,000 physical security records digitized, and nearly 38,000 citizens have opened investment accounts, the majority of whom are active traders. Daily transaction volumes regularly exceed 50 million Birr, sometimes reaching over 60 million Birr.
To ensure investor protection, the ECMA conducts thorough pre-licensing vetting and ongoing post-licensing supervision. The Authority has also implemented a cutting-edge technology surveillance system to monitor trading activities, identify irregularities, and maintain market integrity.
Furthermore, ECMA is promoting public education initiatives to inform citizens about illegal market practices and associated penalties, thereby fostering a stable environment for sustainable financial growth.
