Ethiopia was set to launch a stock exchange on Friday. The first company to be listed on the exchange is Ethio Telecom, the state-owned telecoms firm. Dozens more, including banks and insurance companies, are expected to follow soon.
In recent months, the authorities have adopted a series of economic reforms to attract investors.
In December, parliament passed a law permitting foreign banks to open subsidiaries in Ethiopia, albeit with restrictions that international firms could own only up to 49 percent of shares.
The government organised the first sale of shares in Ethio Telecom in October, permitting up to 10 per cent of shares to be sold.
Ethiopia also announced a major reform of the exchange rate in July, allowing its currency, the birr, to float freely against the dollar.
Pegging the currency to the dollar had become increasingly unsustainable.
A $3.4-billion aid programme from the International Monetary Fund and a $1.5-billion financing plan from the World Bank were held back until Ethiopia accepted the reform.
Africa’s second most populous country, with some 120 million people, Ethiopia recorded high rates of economic growth -– often exceeding 10 percent annually –- between 2004 and 2019.
