The approval of the capital market in Ethiopia will give a boost to the growth of startups in the country, the CEO of the Ethiopian Securities Exchange (ESX) said.
Ethiopian Securities Exchange CEO, Tilahun Esmael Kassahun told ENA that capital market and startups have supplementary relationship.
Tilahun emphasized the crucial role startups play in a nation’s future, particularly within the technology and innovation sectors, pointing out that many of the world’s leading tech giants began as small startups.
Previously, Ethiopian startups faced major hurdles, including securing capital and operational funds from the major financial institutions.
However, Tilahun expressed assurance that the new capital market will enduringly address this bottlenecks.
The government is providing great policy support to startups in the country, the CEO noted.
The capital market will allow startup entrepreneurs to access financial services based on their ideas, he explained.
This will also open doors for startups to become major players within the capital market themselves.
Beyond just attracting capital, Tilahun believes the capital market will positively contribute to Ethiopia’s financial inclusion.
According to him, startups will not only have access to investment capital but also benefit from various financial instruments that can address operational cash flow needs.
Source: ENA