Leading Experts Say Capital Market to Breathe New Life into Nation’s Financial Sector

Addis Ababa University today held a panel discussion on the size of the Ethiopian capital market and its public-based drivers. The panel addressed issues in capital market analysis, including the identification of the scope and position of the market, giving information on key drivers, challenges, restraints, and expansion chances of the market and moderate threats.

Panelists further explored the diversity of the makeup of capital markets and the wide variety of factors that can influence their operation. Principally, the factors of globalization and integration of economies motivate cross-border capital flows internationally, further encouraging the accessibility of a broad spectrum of assets and markets for diversification of portfolios and enhancement of returns.

It was also brought to light that advances in financial technologies such as digital platforms are assisting innovation in the capital market ecosystem, offering opportunities for startups, and traditional financial institutions alike to improve access to capital for businesses and investment.

Per projections, the Ethiopian capital market is poised for growth in the coming years, motivated by several strategies and factors. Market players are likely to focus on product innovation and development to meet evolving consumer demands and preferences.  Further, investments in research and development are likely to boost capital market operations and strategic partnerships are also poised to determine the operational scope and vitality of the Ethiopian capital market, which on balance, looks promising.

It was mentioned that national universities, through such modalities as university-business-government collaboration, can take advantage of opportunities such as the latest liberalization move, capital markets, to engage with policymakers and the public to promote their vision and mission and play a leading role in transforming Ethiopian society. Working with policymakers and making an impact is an important role in public higher education, it was said.

The President of AA|U, Dr Samuel Kifle said, as a leading public university, AAU has had a central role and a proud record in deliberations on national affairs and the generation of ideas that lead to the betterment of conditions in Ethiopia.

The president spoke on the need to deliver what ideas and evidence policymakers are looking for and understand how research and evidence is used in policymaking and identify and develop opportunities for influencing policy as scholars of a leading public university. The president further said autonomy places a new imperative on the scholarly community to reach out and work with important stakeholders and maximize their own as well as the university’s impact on the nation.

The president further said, as in past platforms, the present forum deliberates on the latest agenda of capital markets in the context of Ethiopia which requires scholarly debate and direction in view of the overriding national importance of the subject. He said the AAU forum on capital markets is designed to generate ideas on diverse aspects of the financial reform agenda, including the opportunities and threats, capital structure, level of capital market liquidity, market integration and segmentation, consumption, investment and economic growth, regulatory and policy issues, government borrowing, and future trajectory of the Ethiopian capital market,

A distinguished panel of financial experts and economic scholars from AAU, various ministries and organizations, including the Ministry of Finance, Ministry of Plan and Economy, national, commercial and private banks discussed the financial markets roadmap in Ethiopia and reflected on the relevant issues of overriding importance, most notably the evolving capital market, navigating growth opportunities and outlook.