New Era

Ethiopia’s SMEs can drive stock market beyond Kenya-style stagnation: Adviser

By David Whitehouse

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Posted on June 29, 2023 07:29

A general view shows the branch of Commercial bank of Ethiopia along Bole Road in Addis Ababa © Ethiopian banks face crucial decisions on training for market liberalization and a capital market.  REUTERS/Maheder Haileselassie Tadese
Ethiopian banks face crucial decisions on training for market liberalization and a capital market. REUTERS/Maheder Haileselassie Tadese

Ethiopia’s abundance of small and medium-sized businesses mean the country’s stock market planned for 2024 won’t be a backwater where just a few large stocks are traded, a foreign adviser says.

The country is likely to be able to open its first stock market since 1974 as planned in the first half of next year, says Sandy Wade, Africa Advisory’s associate director for the Horn of Africa. “The only thing that would cause a significant delay would be a government decision,” he says.

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