A high profile consultative meeting held to deliberate on credit rating in Ethiopia

With the theme “Introducing Credit Rating as capital market service to businesses in Ethiopia” a high profile consultative meeting took place to discuss and introduce credit rating to diverse business operators such as financial institutions and the likes.
Hosted by Addis Chamber jointly with International Credit Rating Agency, ICRA, the consultative meeting shared the thoughts and experience of senior experts and professionals from the sector.
“I am extremely honored to welcome you all to this exceptional and pioneering workshop on credit rating services and the importance of it for Ethiopian businesses”, briefs Shibeshi Bettemariam in his introductory remark.
Globally the rating industry that is operating at national level with the comparative rating of national economy hasn’t seen any new entrants for more than a century, said Mesenbet Shenkute, President of Addis Chamber in her opening remark.
As Addis Chamber, we believe that various services including credit rating for which we gathered today are important ingredients for the development of effective capital market in Ethiopia, further remarks the president.
We are here to cater the African market as we are fully accredited by the central bank of Tanzania and the first international credit rating agency to be accredited by central bank of Tanzania, said Hassan Mansur, ICRA Director, from Tanzania while addressing in his remark at the meeting.
Moderated by Tilahun Ismail (PhD) CEO of ESX , the consultative meeting was accompanied by panel discussion that invited key players of the financial sector in Ethiopia.
In most countries of the world “credit rating is everything” said Hikmet Abdella , director general from Accounting and Auditing Board of Ethiopia , and in Ethiopia the way we conduct businesses also emulates with the rest of the world and for many years credit worthiness depends wholly on collateral and therefore credit rating not need such instruments of credit rating or credit scores for individuals, thus limiting access to finance as well as discouraging entrepreneurship in the country , further said Hikmet and commended the initiatives taken by Addis Chamber to promote credit rating in Ethiopia.
Estifanos Melkamu , from legal advisor from Ethiopian Capital Market Authority on his part briefed the panel regarding credit rating and its interface with Ethiopian capital market and securities exchange and stating that the major role of the ECMA to protect the investors by introducing multiple regulatory frameworks.
Asfaw Alemu , President of Dashen Bank S.C ,one of the biggest financial institute in Ethiopia highlighted the significance of credit rating services in changing the finance landscapes in Ethiopia through providing valuable information about counter parties that in turn would mitigate risks and ensures sustainability.
He also said that introducing credit rating services in Ethiopia to improve the doing business environment as well as to attract FDI in the country.
Solomon Gizaw from HST said that introducing credit market in the Ethiopian economy, we can fasten growth and development of the country while forwarding his thought on.
In addition the panel hosted the speeches of Zeshan Khan , global general manager of ICRA who said that credit rating is the best choice to promote trade and investment as these services acquires their own methodologies , practices and regulatory requirements to and in the meantime Zeshaan warmly acknowledges Addis Chamber for its commitment to promote credit rating services among business communities in Ethiopia.
The high profile panel discussion also hosted discussions and reflections from participants of the two sessions.