In today’s announcement, the Ethiopian Capital Market Authority has established Monday, February 12th, as the initiation date for licensing service providers. Following the directive issued on January 27th, which indicated a two-week timeframe for license provision, the authority is on track to commence licensing next week.
Brook Taye (PhD), the Director General of the Authority, revealed that there will be 16 types of permits available for application.
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With both domestic and foreign entities eagerly eyeing the emerging opportunities, anticipation is palpable. Brook noted that three foreign investment banks have already shown strong interest.
Under the regulatory framework, deposit-taking banks can establish independent subsidiaries with a minimum capital requirement of 100 million Br, facilitating their foray into investment banking and offering a strategic avenue for diversification.
Dr. Brook further stated that local commercial banks have begun preliminary operations to explore market engagement possibilities.
Furthermore, the Director General provided insights into the ongoing drafting process of the Public Offer Directive, emphasizing their commitment to fostering transparency and investor protection. This directive underscores dedication to facilitating fair and efficient capital raising activities while upholding the highest standards of accountability.
During the session, he also unveiled the authority’s forward-looking agenda for the upcoming six months, outlining key initiatives and priorities aimed at advancing the interests of investors and market participants alike.
Sources: Addis fortune & ECMA
