The first business to get operation permits on the forthcoming securities exchange is a foreign corporation.
The first operating license was handed over by the Ethiopian Capital Market Authority (ECMA) during a ceremony held at its main office on Saturday, March 30 for Deloitte.
The British multinational professional services network Deloitte is not new to the Ethiopian market; in fact, it has just recently reopened its Ethiopian office after a six-year hiatus.
For many years, HST Consulting Plc, a renowned consulting business headed by Solomon Gizaw and offering expert services to customers in a range of sectors, has worked with Deloitte.
The business has been granted a license to function as an investment advisor at the Ethiopian Securities Exchange (ESX), according to ECMA.
Since ECMA invited interested parties to apply, this is the first license grant.
The ECMA Director General, Brook Taye, stated at the time that permits would be granted in less than a month if all the paperwork was submitted.
The ‘capital market service providers licensing and supervision directive 890/2024’ of the ECMA states that an investment advisor’s duties include provide investment advice concerning investments, issue or promulgate analyses or reports concerning investments, and other services as defined by the Authority from time to time.
About two years ago, on the eve of partial privatization, the over a century and a quarter old public corporate powerhouse Ethio Telecom had its valuation done by Deloitte.
The ECMA offers a range of licenses that service providers can apply for in order to participate in the upcoming capital market, which will be operated by the ESX.
These licenses include securities brokers, investment advisers, operators of collective investment schemes, investment banks, securities dealers, custodians, market makers, credit rating agencies, securities appraisal firms, securities portfolio managers, and others, as listed in the ‘capital market service providers licensing and supervision’ directive.
A week ago, PM Abiy Ahmed announced that Ethio Telecom will begin selling 10 percent of its shares in two months.
