Bond Issuance and Regulation in Ethiopia

An active and efficient government securities market could be a catalyst for development of broader capital markets. Development of capital markets has long been recognized as an important aspect of economic development by providing strong financial basis for financing needs. Stock and bond markets are two major components of capital markets. Capital markets are markets where people, companies, and governments with excess liquidity transfer those funds to people, companies, or governments who have a shortage of funds. By doing so, capital markets promote economic efficiency by channeling money from those who do not have an immediate productive use for it to those who do have.