Amhara Rigional State Ask The Federal Goverment To Intervine On Raya Situation
“Established in 1956, Ras Hotel was actually the first shareholding company in Ethiopia,” Ermias told the gathering.
Traded under the auspices of the Addis Ababa Share Dealing Group, companies such as Ethiopian Abattoirs SC, Bottling Company of Ethiopia, Indo-Ethiopian Textiles SC, HVA Ethiopia and Tendaho Sugar Plantation are indeed part of that long history of share market in Ethiopia. Ermias argued at length that most of the world’s well-established stock exchanges have their roots in small gatherings and humble private initiatives.
“The likes of the New York Stock Exchange (NYSE), which started as early as 1792, was actually an accord between 24 stockbrokers signed under a Buttonwood tree in New York City,” he said.
Almost two decades later, Yared Haile-Meskel, managing director of YHM Consulting, reflected a similar sentiment at the East African Finance Summit held last week at the UNECA conference hall. In a meeting still well attended by investors, finance professionals, scholars and regulators, Yared told the gathering that Ethiopia is still ripe for an organized stock exchange; “even if it is the most basic exchange platform”.
Yared too went back to the 1950s and 60s and dug up the stock exchange experience in Ethiopia in hope of renewing the drive to re-establish an organized exchange in Ethiopia which was dissolved in 1974 following the coming to power of the Derg.
Ermias’s saga with the establishment of an exchange in Ethiopia was, however, just staring during that chamber meeting twenty years ago. The subject matter necessitated a discussion which is a little more than a mere intellectual debate, it seemed. It was decided right there in Ghion Hotel that a steering committee be setup to see through a business community initiative towards an organized stock exchange in Ethiopia. “By the next meeting, together with the chamber and another consulting firm (East African Investment Securities), we were deep into the work of organizing a stock exchange,” Ermias told The Reporter.