Addis Ababa, February 4, 2025 — The Ethiopian Capital Market Authority (ECMA) has issued a public notice requiring all publicly held companies in Ethiopia to submit detailed information about their existing shares. This move follows the enactment of the Public Offer and Trading of Securities Directive No. 1030/2024, which took effect on November 13, 2024.
The new directive is aimed at enhancing investor protection, improving market transparency, and ensuring the orderly operation of Ethiopia’s emerging capital market. The directive applies to all companies with more than fifty shareholders, regardless of sector or industry, and mandates them to provide relevant data by March 10, 2025.
Key Submission Requirements Publicly held companies must submit the following information to the ECMA:
- Total number of shares, including subscribed and paid-up shares.
- A complete list of shareholders, including their contact details and share ownership.
- The value of the securities as of the issuance date.
- The timeline of past share offerings.
- Copies of offer documents used for share solicitations.
- Advertisements and media used for previous share sales.
- Details of ongoing public offerings, including shareholder resolutions authorizing such issuances.
The submission process requires companies to sign an attestation of accuracy and completeness. Hard copies must be delivered to the ECMA headquarters at Minaye Building, 17th Floor, Kirkos, Addis Ababa, while soft copies can be sent to designated email addresses.
Compliance and Regulatory Implications Failure to meet the March 10, 2025 deadline will result in shares being considered as issued post-November 13, 2024. Moreover, companies must register their existing securities within a year from the directive’s enactment. Any ongoing offers initiated before November 13 must also be registered within this period.
The ECMA has emphasized that all future security offerings must undergo proper registration before any sales or promotional activities. Non-compliance will lead to penalties as per the Proclamation and Directive.
Market Impact and Future Prospects This initiative marks a significant step in Ethiopia’s efforts to develop a well-regulated capital market, aligning with global best practices. By enforcing stricter compliance measures, the ECMA aims to build investor confidence and create a more transparent financial ecosystem.
Publicly held companies are urged to act swiftly to avoid penalties and ensure a seamless transition to the regulated market framework.
