Ethiopia: Where did the OLF fighters come from Besides The Ones That Came Asmara? | Wazema Radio
Abdelmenan said one of the things required to have a securities exchange is a good accounting information adding that auditing standard should be improved. According to Abedelmenan, the Ethiopian government has enacted a proclamation that compels local businesses to adopt IFRS (International Financial Reporting Standard) and an Accounting and Auditing Board has been established. “Not many companies are adopting IFRS and the board is not yet strong enough to oversee that. How can we have a stock exchange where there is no reliable accounting information?” he inquired. “Stock exchange needs to have the technology infrastructure, reliable accounting information, and trained manpower. It also needs a location. If the stock market is going to be launched after two years how many of these things have been done,?” he asked.
Zemedeneh said that the banks and insurance companies have adopted IFRS. “Some companies and government entities are going to do that. That is a start,” he said.
Zemedeneh noted that the accounting and auditing firms have to build their capacities. “We need to set up the regulatory body and formulate the regulation. All the other things have not yet started except the adoption of the IFRS,” he said.
According to Zemedeneh, the World Bank is going to provide the Ethiopian government technical assistance on how to establish a stock market. “I hope they would be able to roll out these things quickly. Two years is a very short period of time. It could be at the end of 2020 or slide to 2021. All the infrastructure need to be prepared.”
Eyessuswork said that the stock exchange could be operational by 2020 or 2021 but the work has to be started now. “You may ask if the required infrastructure is in place. We have been talking about this for more than ten years. We have to start it somewhere. Let us start it. Let us move forward,” he concluded.
Yared Hailemeskel, managing director of YHM Consulting, believes that it is doable. “Once you have the regulation, setting up the trading floor is not a challenging task,” Yared told The Reporter. “ECX has been established here. So why not the Addis Ababa Stock Exchange?” he wondered.
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