The New Stock Market in Ethiopia Signals Economic Reforms
Prime Minister Abiy Ahmed has been leading efforts to open up Ethiopia’s economy, with the recent launch of a new stock market being a significant step forward. This comes after a two-year civil war that ended in late 2022, claiming the lives of at least 600,000 people. The liberalisation of the foreign exchange regime, a key reform, was a precondition for a $3.4bn IMF bailout, the largest ever concessional programme approved by the IMF board in July.
Investors and lenders have welcomed these reforms, seeing them as crucial for Ethiopia’s economic development. The government aims to secure up to $27bn in financing and investment over the next four years, equivalent to 16% of the country’s GDP. This funding is expected to come from various sources including the IMF, World Bank, China, the United Arab Emirates, and other partners.
These efforts are part of a broader strategy to attract foreign investment, boost economic growth, and create opportunities for Ethiopian businesses. The new stock market is seen as a key platform for facilitating investment and providing companies with access to capital to support their expansion and development.
Overall, the economic reforms in Ethiopia are seen as a positive step towards stability and growth, following a period of conflict and turmoil. The government’s commitment to opening up the economy and attracting investment is crucial for the country’s long-term prosperity.
Sources: FT
