Ethiopian businesses and investors eagerly awaited the news today, as the Ethiopian Capital Market Authority (ECMA) announced the official registration of the “Capital Market Service Providers Licensing and Supervision Directive No. 980/2024.” This landmark directive serves as the foundation for a robust legal framework, governing everything from licensable activities within the capital market to the responsibilities and obligations of licensed service providers.
“This directive represents a pivotal moment in Ethiopia’s capital market development,” declared Dr. Brook Taye, Director General of the ECMA. “It offers a comprehensive legal structure that safeguards market integrity and stability, while prioritizing investor protection and transparency.”
The directive introduces 15 distinct license types, each tailored to specific capital market activities. Qualified service providers meeting the stipulated prerequisites will be eligible to operate under this framework. Notably, the ECMA assumes responsibility for overseeing and regulating the activities of all licensed entities.
This development marks a significant step towards the much-anticipated launch of the Ethiopian capital market. The ECMA is actively finalizing preparations and welcomes collaboration from all stakeholders to collectively realize this crucial milestone.
Our law firm remains closely dedicated to demystifying the intricacies of this new directive and advising clients on navigating the Ethiopian capital market landscape. Interested parties seeking further details or a copy of the directive can download here
