New Taskforce to Safeguard the Integrity of Capital Market

ADDIS ABABA – The Ethiopian Capital Market Authority (ECMA) has forged a new partnership to safeguard the integrity and smooth operation of the stock markets.

Ethiopia’s capital market regulatory body formed the task force together with four federal civil and security institutions.

This move comes amid preparation to introduce the first securities exchange in the country at the end of the current fiscal year.

Crucial MoUs

On Thursday, ECMA officially concluded “two crucial” agreements with its key partners.

The first one was the ‘Capital Market Integrity Task Force Cooperation and Coordination Agreement No 01/2024’, establishing the ‘Capital Market Integrity Task Force’.

The Taxforce has the Ministry of Justice, the Ministry of Trade and Regional Integration, the Federal Police Commission, and the Financial Intelligence Service as its members.

It has been tasked to safeguard the integrity of the capital market by detecting, investigating, and prosecuting any illicit activities within the marketplace.

Similarly, the ECMA also concluded a strategic cooperation agreement with INSA, the Ethiopian Artificial Intelligence Institute, and the National ID Program Office to boost technological infrastructure.

“These collaborations reinforce ECMA’s commitment to maintaining market integrity, identifying illegal activities, and enhancing technological capabilities,” the regulator says in a statement.

Awash Bank Buys Stake in ESX

The latest development at ECMA was announced on the same day the ongoing push to launch the Ethiopian Securities Exchange (ESX) via public-private partnership got a financial boost from the banking sector.

Awash Bank SC has become a shareholder in the Exchange with a 70 million Birr investment. Awash is now the fourth private financial institution to buy a stake in the ESX, after Zemen, Sinqqee, and Global Ethiopia.

The government has already offered local and foreign investors 75% of the bourse with issued share capital of about 900 million birr. The remaining 25% is owned by the Ethiopian Investment Holdings (EIH), the nation’s sovereign wealth fund, and its four subsidiaries.

The ESX, the first and only organized and regulated securities exchange in Ethiopia, is expected to start operating this year.

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