The Ethiopian Capital Market Authority (ECMA) has teamed up with the Information Network Security Administration (INSA), the Ethiopian Artificial Intelligence Institute, and the National ID Project Office to strengthen its technological setup and ensure investors’ safety.
This partnership, agreed upon on February 29, 2024, covers cybersecurity, transaction protocols, infrastructure, data protection, and preventing personal data theft. It aims to boost ECMA’s ability to monitor the market and build trust among investors.
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Dr. Brook Taye, Director General of ECMA, emphasized the importance of technology in capital market operations and the need to safeguard against crimes and frauds. INSA will play a crucial role in ensuring information sovereignty.
Tigist Hamid, Director General of INSA, highlighted their collaboration in investigating cybercrimes and outlined their tasks in providing security audits, clearances, and cyber protection for ECMA.
The integration of AI into ECMA’s operations is seen as a significant move towards modernizing the capital market. Worku Gacneha, Director General of the Artificial Intelligence Institute, expressed readiness to support ECMA by leveraging AI for better data-driven decisions.
ECMA plans to use Digital ID as the primary identification method for retail investors in the capital market, aiming for mandatory adoption once Digital IDs are widespread.
Yodahe Zemichael, Executive Director of Ethiopia’s National ID Program, explained how Digital IDs could facilitate KYC for ECMA and streamline transactions.
Ethiopia is on schedule to launch its stock market in 2024, with ECMA achieving a milestone by registering capital market players and implementing the Capital Market Service Providers Licensing and Supervision Directive, which governs all aspects of the capital market.
In addition to technological advancements, ECMA has established the Capital Market Integrity Task Force, comprising various stakeholders, to combat illegal activities in the market, protect investors, and ensure orderly operations.
Brook emphasized the importance of the task force in addressing capital market crimes and the need for new skills and systems to combat them effectively.
The task force is closely monitoring share-selling advertisements and cracking down on companies engaged in deceptive or illegal share-offering practices, aiming to protect investors from financial losses.
Source: Shega
