ETHIOPIA’S ISLAMIC CAPITAL MARKET: POLICY FRAMEWORK WHITE PAPER

The white paper, prepared by IFAAS for Ethiopia’s Capital Market Authority, outlines a policy framework to establish an Islamic Capital Market (ICM) that would diversify financing, boost inclusion for the country’s sizable Muslim population, and attract domestic and foreign investment, while identifying key obstacles such as fragmented government coordination, regulatory and tax gaps, limited human capital, and low public awareness. It proposes a phased implementation plan—including legal and supervisory reforms, a Sharia‑compliant governance structure, appropriate branding, and capacity‑building initiatives—to create an enabling environment for Sharia‑compliant securities, sukuk, and other Islamic financial products.