Ahferom Teklay

Establishing Stock Exchange in Ethiopia: a Compulsory for a Booming Economy Ahferom Teklay

An organized and efficient stock exchange has a positive impact on the economic growth by increasing saving and efficiently allocate capital to productive investments, allocate capital to corporate sector, increasing liquidity of financial assets etc. while this is the truth, it is difficult to predict the time in which a stock exchange will be established in our country ( Ethiopia) . So I study to answer the question ?should Ethiopia consider establishing of a stock exchange?? To answer this question I tried to collect data from shareholders, share companies respective managers, academicians and National Bank of Ethiopia?s officials in one hand and from previous writings in the area on the other hand. I found that even though the preconditions are not fulfilled fully, this is the right time to start work to establish a stock exchange and we can start operation at a minimum level. But the government has to be involved fully and have to control, follow and supervise the process.