Ethiopia's macroeconomic reforms have successfully transformed the country into a "premier investment destination", according to Dr. Eyob Tekalign, Governor of the National Bank of Ethiopia (NBE).
Speaking at the Second Regional Capital Market Conference, Dr. Eyob highlighted that the comprehensive reform agenda has significantly contributed to national prosperity by creating a "predictable, transparent, and conducive capital market ecosystem."
Key Achievements of the Reform
According to ENA, the NBE Governor stressed that the macro-level reforms were deliberately designed to create a market-friendly environment. Key outcomes he cited include:
Financial Stability:The reforms have enabled the growth of banks' capital reserves, strengthening the financial sector.
Job Creation:The implementation of the reform has been linked to the creation of "wide-ranging employment opportunities."
Competitive System:An environment is now in place to establish a competitive and market-led financial system, moving beyond older regulatory frameworks.
Dr. Eyob emphasised the crucial role of the capital market in accelerating national economic growth and deepening the participation of the private sector, stating that the long-term goal is to position the private sector as the financial leaderthrough a market-led system.
The Role of the Capital Market Authority
Dr. Eyob affirmed that the Ethiopian Capital Market Authority (ECMA) is already functioning as an established institution, not a mere startup, and is making an active contribution to the financial system. He noted that the ECMA is efficiently expanding diverse market systems to accelerate private sector growth.
Adding context, Hanna Tilahun, Director General of the ECMA, stated that the Authority has accomplished numerous tasks in the short time since its legal and institutional formation.
Modernisation Efforts:The ECMA has undertaken multiple activities to modernise Ethiopia's financial system over the past few years.
Global Collaboration:The Authority has established strong collaborations with regional and international financial institutions to meet its developmental goals.
Hanna confirmed that the ECMA has issued licenses to several institutions, taking Ethiopia's specific context into account, and stressed that collaboration among all stakeholders is essential to building a strong and capable capital market.
