The importance of sovereign bond issuance in financing Ethiopia’s development

Makeda Berhanu Kebede,
(2016)

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MAKEDABERHANUKEBEDE_72321300_2016.pdf
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MAKEDABERHANUKEBEDE_72321300_ANNEXE2.pdf
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MAKEDABERHANUKEBEDE_72321300_ANNEXE4.pdf
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MAKEDABERHANUKEBEDE_72321300_ANNEXE1.pdf
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MAKEDABERHANUKEBEDE_72321300_ANNEXE3.pdf
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Details

Supervisors
HENRARD, LUC
Faculty
Louvain School of Management
Degree label
Master [120] en sciences de gestion
Abstract
Ethiopia is a growing economy with a considerable economic potential. To finance its development, Ethiopia has appealed to foreign aid, external loans, and more recently to a newly introduced sovereign bond programme. This study highlights the advantages and risks of debt issuance as a financing mechanism and explores its relevance in the funding of Ethiopia’s development programme. To do so, a thorough research on the political and macroeconomic context was led and a survey was conducted among institutional investors. Respondents consider Ethiopian bonds a good diversification opportunity, while alerting about the important political commitment to implement Ethiopia’s development programme and the management of foreign currency reserves. These results have helped to establish a critical assessment on aspects that Ethiopian authorities should consider in forthcoming debt issuance initiatives.