Page 20 - Abyssinia Business Network ABN August 2019

establishing stock exchange market in terms of the development process, institute the market.
backed by Investors expectation technology, financial transaction
and willingness to invest and the process, controlling and security and Recommendations
current country progress in terms of education and training. For Governments:
economic structure, Gross Domestic
Product (GDP), employment rate Conclusions • By understanding the
and inflation. Most shareholders and bright prospect, the government
share companies support the idea of • There is a demand of stock has to consider establishing
establishing stock exchange market exchange market, even if there stock exchange market
with a full government controlled is a problem of awareness in the • Attention has to be
structure. shareholders and society. given for creating awareness
• The current economic as majority of the shareholders
Things to be done first before condition of Ethiopia is ready for have no knowledge of stock
establishing the market establishing the stock exchange exchange.
market even though there are some • Accounting and auditing
Concerning what should be done requirements that should be fulfilled. standards has to be developed to
first before establishing the stock • Selling a share is difficult higher level
exchanges market, it is believed that as there is difficulty to get the buyer • The government has
there has to be a major economic easily and fair price. to share the best practices of
reform and police formulation by • Share companies are not other countries experiences that
developing rules and regulation, Public obligated to re-deem the shares; have emerging stock exchange
awareness about stock exchange they try to help the shareholders by markets
through giving training and education convincing them to hold on to it for • Supporting has to be
has to be done, the country needs longer. there for further research into
to develop advanced technological • Ethiopia will benefit a lot the role
systems that can facilitate the process from having the stock exchange • The government should
and getting experience from other market. allow privatization to the
countries is another formality in • Government has to be the public through shares instead
which there are a number of areas owner of the market of transferring it to the higher –
that Ethiopia has to adopt from other • There are a lot of areas that bidders
countries that have already institute that country has to share and adopt • The government has to
stock exchange market, this are can be from other countries who are already top up on the good lessons of
EXC

For Share companies:

• By understanding
stock market is a relatively
cheap source of finance when
compared to the money market
and other sources, there should
be continuous effort to motivate
the public about the necessity of
the exchange market.
• Share companies has to
start proactively to sell and buy
shares of others and their own
• They have to push
the government to consider
establishing the market

18 Abyssinia Business Nework ነሃሴ 2011 / August 2019