Development of Non-Federal Government Debt Market Tender, Ethiopia - 99411807

Procurement Summary

Country : Ethiopia

Summary : Development of Non-Federal Government Debt Market

Deadline : 15 Apr 2024

Other Information

Notice Type : Tender

TOT Ref.No.: 99411807

Document Ref. No. : 0002007972

Competition : ICB

Financier : World Bank (WB)

Purchaser Ownership : Public

Tender Value : Refer Document

Purchaser's Detail

Purchaser : WORLD BANK GROUP
Ethiopia
Ethiopia
Email :corporateprocurement@worldbank.org

Tender Details

Expression of Interest are invited for Development of Non-Federal Government Debt Market in Ethiopia.

Publication Date: 03/28/2024 12:00 AM EDT

EOI Deadline: 04/15/2024 11:59 PM EDT

The Ethiopian financial sector is undergoing a rapid transformation. The sector, previously dominated by banks, microfinance institutions, and insurance companies offering traditional financial products, is now transitioning to a modern financial system with the introduction of capital markets. To this end, the government of Ethiopia is developing capital markets as part of its Homegrown Economic Reform Program. Accordingly, the House of Peoples- Representatives enacted the Capital Markets Proclamation (No. 1248/2021) (the “Proclamation”) on June 10, 2021.

The Proclamation lays down the legal foundation for the establishment of key institutions, the issuance and transaction of securities, as well as the regulation and supervision of the markets. As such, the Proclamation established the Ethiopian Capital Market Authority (ECMA) as the apex regulator tasked to set up the necessary institutions, policies, legal instruments, and market infrastructure required for the development of a well-functioning and robust capital market.

ECMA has identified the development of a vibrant debt market as one critical component of the capital market in its ten-year market development roadmap. Such debt market will encompass non-federal government bonds such as corporate bonds, municipality bonds, sukuk, and other thematic bonds (green, social, sustainable, etc.). ECMA believes that the development of these debt products will support the country-s objectives in sustained economic growth.

The International Finance Corporation (IFC) is the private sector arm of the World Bank Group (WBG). Its mission is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance, and risk mitigation services to businesses and governments. IFC finances projects that are commercially viable and environmentally and socially sound, and investments entail both direct investments into private sector companies, as well as support for on lending through Financial Intermediaries.

Through the Ethiopia Capital Market Development (CMD) project, IFC is working with the ECMA and other key stakeholders to develop capital market regulations, increase the efficiency of the government securities market, develop the domestic institutional and retail investor base, and increase the supply and issuance of capital market transactions. The project will support the growth of Ethiopia's domestic capital markets and increase access to local currency finance.

IFC is seeking a consultant/firm to identify challenges to the development of an efficient non-federal government debt capital market in Ethiopia and provide recommendations on how to address such challenges. The consultant will conduct a market assessment, analyze market structure including viable infrastructure and trading mechanisms, review and analyze market players including possible issuers and investors, and review and identify gaps in current applicable laws and regulations.

The consultant-s work should create the groundwork for the successful introduction of non-federal government bonds including corporate bonds, municipality bonds, sukuk and other thematic bonds in Ethiopia.

Documents

 Tender Notice