As Ethiopia celebrates the inauguration of its Securities Exchange, the critical role of financial media in ensuring its success cannot be overstated. However, despite the exchange’s launch, one glaring oversight persists: the limited focus on the role of financial media in its framework. While much attention has been given to the technical and regulatory infrastructure, the media’s indispensable function as a bridge between the market and the public remains underemphasized.
For the Ethiopian Securities Exchange to achieve its long-term objectives, financial media must be recognized as an integral part of the market ecosystem, serving to educate, inform, and promote transparency.
The launch of the Ethiopian Securities Exchange marks a significant milestone in the country’s financial history. However, for this institution to thrive, a well-informed public is essential. Financial media plays a pivotal role in simplifying complex financial concepts such as equities, Initial Public Offerings (IPOs), bonds, and market volatility.
In a country where financial literacy is still developing, media outlets are crucial in providing accessible, easy-to-understand information about market operations. Investors, businesses, and the general public need clear explanations of how the securities exchange functions, how to participate, and how to evaluate risks and opportunities. Without this educational foundation, the market risks alienating potential participants.
Transparency and investor confidence are the cornerstones of any securities market. Now that the Ethiopian Securities Exchange is operational, real-time reporting on market activities, corporate performance, and regulatory changes will be critical. Financial media must provide consistent updates on stock prices, corporate earnings, and economic trends to ensure market participants can make informed decisions.
The experience of established markets like the United States highlights the importance of robust financial reporting. Outlets such as The Wall Street Journal and Bloomberg have demonstrated how consistent and reliable media coverage can shape investor perceptions and foster trust. Similarly, Ethiopian financial media must strive to provide dependable coverage, which will be crucial in attracting both local and international investors to this nascent market.
Financial media also serves as a watchdog, ensuring accountability and promoting ethical business practices. In the aftermath of the 2008 financial crisis, investigative journalism played a key role in exposing corporate misconduct, spurring regulatory reforms, and restoring trust in the system.
In Ethiopia, media outlets must adopt a similar role, reporting on earnings, stock price fluctuations, and governance issues while investigating potential cases of insider trading or market manipulation. By doing so, they will help ensure that the securities exchange operates transparently, creating an environment of trust and fairness.
In Ethiopia, where financial literacy is still a work in progress, financial media can help bridge the knowledge gap. Through articles, podcasts, radio shows, and TV programs, media outlets can demystify stock market operations, making them accessible to the broader population.
For instance, in India, platforms such as Economic Times and Money control offer content that caters to both novice and experienced investors. Ethiopian media outlets can emulate this approach, providing a mix of beginner-friendly content and detailed market analysis to foster greater market participation.
Finally, financial media can play a vital role in shaping market regulations and policies. As the Ethiopian Securities Exchange evolves, ongoing dialogue between policymakers, regulators, and the public will be essential. Financial media can facilitate this dialogue by hosting forums, publishing expert analyses, and fostering public debates on regulatory frameworks and market challenges.
In South Africa, for example, financial media outlets regularly engage stakeholders in discussions about market regulations and their impacts. Ethiopian financial media should adopt a similar approach, ensuring that the regulatory environment remains inclusive, transparent, and responsive to market needs.
The launch of Ethiopia’s Securities Exchange is a historic achievement, but its long-term success depends on integrating financial media into its operational and strategic framework. Media outlets are not merely observers; they are active participants in fostering education, transparency, and accountability.
To build a stable, transparent, and successful marketplace, financial media must play a proactive role in informing and engaging the public, holding companies accountable, and supporting regulatory development. With the exchange now operational, Ethiopia has a unique opportunity to develop a robust financial media landscape that supports its securities market and contributes to the nation’s economic growth.
Bruh Yihunbelay is the station manager of Tirita 97.6 FM and host of the Mercato Be Tirita radio show. He can be reached at [email protected].
