Deloitte Building Nairobi. FILE PHOTO | NMG
Audit and consultancy firm Deloitte is the first entity to secure a securities investment adviser licence for operation in Ethiopia ahead of the formal launch of the country’s Securities Exchange slated for the third quarter of this year.
Deloitte applied for the licence out of its Nairobi office and has registered an office in Ethiopia to start operations in the budding capital markets.
“We are thrilled to be the first licensed securities adviser in Ethiopia. This achievement underscores our commitment to the country's capital market growth and demonstrates our dedication to supporting our clients in the region,” said Tewodros Sisay, Deloitte Africa Advisory leader.
Read: Ethiotelecom IPO to launch Ethiopia bourse
“We are well-positioned to support businesses in Ethiopia to thrive and succeed in today's fast-paced and ever-changing business environment."
According to Ethiopia’s Capital Markets Authority (ECMA), the debut issuance is earmarked to be the listing of 10 percent of the State-owned Ethiotelecom whose latest disclosures reveal that it registered ETB 11.0 billion ($193 million) in net profit for the six months ended December 2023.
ECMA also indicates that there are five other State-owned enterprises for which the authority has conducted an investment readiness assessment in preparation for listing.
“This is the first of many milestones to come. In the next few weeks and months, we look forward to seeing the first investment bank, the first broker/dealer, the first market maker acquire a licence to operate in our market,” said ECMA director-general, Brook Taye.
“With the launch of the Ethiopian Securities Exchange on the horizon and the first public offering of a State-owned enterprise, the licensing of Deloitte as an investment adviser will allow us to expedite the development of the capital market in Ethiopia.” The ECMA says it expects more entities out of Nairobi to apply for permits to operate there.
Read: Deloitte fined for Sh2.1bn hidden hole in Chase Bank
“When the market opens up, and we were justified by the coming of Safaricom, we expect that our brothers and sisters in Kenya will be the first ones to take up this opportunity. So, when we designed our intermediary legal instruments, we were looking at Kenyan companies coming in and setting up shop in Ethiopia,” Taye said.
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