Ethiopia opens up to foreign investment firms ahead of capital markets launch

As reported by Reuters

Summary

• Ethiopia has opened its financial sector to foreign investment firms as the country prepares to launch its first-ever domestic capital market and stock exchange.
• The move allows foreign investment firms to participate in the Ethiopian financial sector ahead of the planned launch, helping to build the institutional capacity and investor base needed for a functioning capital market.
• Regulatory frameworks are being developed and put in place to attract foreign portfolio investors while ensuring adequate oversight and investor protection.
• The development of a capital market is seen as a critical step in Ethiopia's economic transformation, enabling companies to raise equity and debt capital domestically rather than relying solely on bank lending.
• The reforms align with Ethiopia's broader Homegrown Economic Reform agenda and its efforts to deepen financial intermediation.
• BirrValue review: Capital market development supports long-term FX and financial stability. For remittance senders, compare bank rates today—reforms improve the macro backdrop but day-to-day conversion rates still vary by bank.