Are you planning to travel to Mekelle? The current Mekelle expects you to keep paper currency in your pocket. Not all ATM machines installed in the city are functioning either. As an effect it’s expected to see a queue at the banks either to withdraw or deposit from/to their accounts. This is the current Mekelle. Given the current dynamics in the city, can one take the indicators and write down the future Mekelle?
Selling shares has been a buzz concept to the majority, and a stranded boat to the majority. The practice was mostly limited to banking and construction businesses. Very recently, however, the practice is attracting wider attention from start ups to the major actors in the region.
EFFORT, a conglomerate of business factories, controls a significant economy in the region. This year, it decided to go public for three of its group factories, namely Mesebo Cement factory, SUR Construction and Trans Ethiopia Plcs. This is a huge break through and a clear indication start ups that capitalize on finance solutions are getting admitted to the delivery rooms. The circulation of financial information is taking a root in the city.
Even though some start ups have already gone public ahead of the three EFFORT groups, the bull gives confidence to the calves in the farmland. For that matter, the idea of going public for these groups has been surfacing in the Tigrian talks for a couple of years. Now, going public is to be the new normal. What is next then? Trading public companies. There is a huge and very stumbling block not start trading though. Fast and reliable payment is a crux part of trading. However, this is not yet part of the current Mekelle. Long term investment is the only card investors can play with, at least for a sizable years to come.
Selling shares can sharpen the harmful side of the saw too. Instrument valuation should go through a rigorous and independent process. Otherwise overvaluation might create a non-existing wealth and that will be a shock to the emerging economy. How does a single company X share value Y amount? The process, the company earnings, plans are expected to be public.
It’s the writer’s view and he can be reached at:
misdess@gmail.com