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The approval of the capital market in Ethiopia will bring greater opportunities for the growth of startups in the country, the CEO of the Ethiopian Securities Exchange (ESX) remarked.
Ethiopian Securities Exchange CEO, Tilahun Esmael Kassahun told ENA that the capital market and startups have a supplementary relationship.
Tilahun emphasized the crucial role startups play in a nation’s future, particularly within the technology and innovation sectors, pointing out that many of the world’s leading tech giants began as small startups.
Previously, Ethiopian startups faced major hurdles, including securing capital and operational funds from major financial institutions.
However, Tilahun expressed assurance that the new capital market will enduringly address these bottlenecks.
The government is providing great policy support to startups in the country, the CEO noted.
The capital market will allow startup entrepreneurs to access financial services based on their ideas, he explained.
This will also open doors for startups to become major players within the capital market themselves.
Beyond just attracting capital, Tilahun believes the capital market will positively contribute to Ethiopia’s financial inclusion.
According to him, startups will not only have access to investment capital but also benefit from various financial instruments that can address operational cash flow needs.
A strengthened Investment Bank, coupled with the ability of commercial banks to increase their deposit capacity through the sale of diverse financial instruments, will create a more favorable financial environment, he elaborated.
“This will indirectly benefit those segments of society who are currently excluded from traditional financial services.”
The CEO anticipates the launch of the Ethiopian real estate market in 2025 and offers further investment diversification, stating that it presents a fantastic opportunity for Ethiopians to participate in the privatization of government enterprises and become shareholders.