The Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA) has organized a Public Private Consultative Forum was held at the Hilton Hotel Dec. 26th under the theme “Company Formation Process in Ethiopia: Challenges and Recommendations.” The Forum deliberated on the regulatory and administrative challenges encountering company formation procedures (particularly share companies) and measures that must be taken to address these challenges
According to a statement from CCSA the As effective conduit to pool large amount of financial and human resources from the larger public, share companies can potentially play a prominent role in a country’s economy. By allowing large scale operation, share companies can provide better business and employment opportunities to the public; can help facilitate technology transfer; can ensure provision of better products and services and increase competitiveness in the international market. Effective exploitation of these potential, however, requires putting in place simple, cost effective and transparent company formation process and an administrative practice that takes protection of the public interest into account, The increased challenges observed in company formation and administration in Ethiopia over the last few years call for a joint evaluation of the existing challenges to come up with practical solutions to overcome them.
“In an attempt to come up with recommendations intended to overcome challenges surrounding company formation process, ECCSA has undertaken a study, the findings of which have been used to prepare a Position Paper of the private sector to be presented in the upcoming forum.”
Minister of Trade, H.E Kebede Chane and President of ECCSA, W/ro Mulu Solomon co-chaired the Forum, which brught together key stakeholders from the private and public sectors. The Forum also deliberated upon the findings of the study noted above as well as other issues to be raised by participants. Other discussed include problems surrounding document registration and authentication, protection of shareholders’ interest, company formation procedures including company naming and issues related with nomination of board members.
Caption: Mulu Solomon (left), President of ECCSA