The Ethiopia Capital Market Authority (ECMA) announces the formation of a Capital Market Integrity Task Force to oversee the country's nascent capital markets.
ECMA Director General Brook Taye (PhD) unveiled the task force at a press briefing today, saying it aims to protect investors as Ethiopia's financial system continues developing. "The task force aims to boost trust as new opportunities arise," he said.
At a press briefing held today in Addis Ababa, it was revealed that the task force represents a partnership between ECMA, the Ministry of Justice, the Federal Police Commission, and the Ministry of Trade and Regional Integration. A memorandum of understanding (MoU) formalizing this collaboration was signed.
Federal Police Deputy Commissioner Zelalem Mengiste will represent law enforcement on the task force. "We are committed to identifying and disrupting anyone seeking to abuse these nascent systems for criminal gain," Zelalem states.
Brook notes complex challenges can emerge within nascent financial systems as new as Ethiopia's. “As the capital markets expand, so too do the risks and complex issues that can arise," Brook said.
"We need coordinated oversight to ensure only legitimate businesses participate and that investors are protected from fraud and manipulation,” he added.
The task force's top priorities will be boosting public confidence and regulating the sector to prevent fraudulent offerings. It assumes oversight of unlicensed groups participating in Ethiopia's capital markets, which are still in early stages.
Justice Minister Gedion Themotiwos backs the task force, saying a cooperative approach between agencies will bolster protections for citizens and companies engaging in the country's capital markets ecosystem.
Violators of capital market rules and laws will face administrative actions or criminal charges, according to Gedion.
The Justice Minister expressed confidence in ECMA's ability to oversee markets but said the task force strengthens protections. "Players must respect the law or face administrative or criminal action," he warned.
Deputy Police Commissioner Zelalem Mengiste pledges to curb capital market crimes while Financial Intelligence Centre chief Muluken Amare commits to halting money laundering and terrorism financing in the markets.