An Ethiopian Stock Exchange?

A picture of the burgeoning skyline in Addis Ababa’s financial district. Source: AddisBiz.com
A look inside the trading floor on the Ethiopian Commodity Exchange
A look inside the trading floor of the Ethiopian Commodity Exchange

The Pros

It provides a ready market for investors to buy and sell their shares.

It contributes to the country’s overall economic development

It provides protection for investors, both the buyers and the sellers

It will improve our current accounting/auditing standards

It forces redistribution of stock ownership and access to profits

It helps attract more foreign investors and their foreign currency

The Cons

The lack of financial literacy within the broader public

The large scale macroeconomic and political instability

The lack of good governance and corruption within the country

The low levels of corporate governance and legislature

The lack of government commitment to the matter

The family ownership structures within most qualified companies

In Conclusion

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The Culture | Ethiopia | Finance

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