Ethiopia’s maiden securities exchange has signed a Memorandum of Understanding (MoU) with its Kenyan counterpart and the i-Capital Africa Institute that will potentially allow cross-listing of companies on both exchanges. The partnership places special focus on promoting cross-border investments, knowledge exchange, and capacity building as part of enhancing financial markets across the broader East African region.
By leveraging the experiences of the Nairobi Securities Exchange (NSE), the third oldest in Africa, the management of Ethiopia’s Securities Exchange (ESX) looks to accelerate the growth of the pre-nascent exchange poised to launch soon.
Wongel Tamene, Senior Manager of Communications and Partnerships at ESX, expects the collaboration to provide key insights towards the creation of an inclusive and vibrant financial market capable of addressing investors’ needs. She pointed out the benefits of peering into methods employed by the NSE to create awareness of financial markets and inspire engagement from potential stakeholders.
“It is a crucial partnership,” Wengel told Shega.
She also highlighted the importance of understanding NSE’s experience over the past seven decades as an informative reference and a fundamental pillar to forming a strong regulatory foundation for potential cross-listings.
In line with these aspirations, the agreement outlines several initiatives, like joint training programs for market participants, a strong regulatory framework, and explorations into innovative financial products.
No Comment Found.