Addis Abeba– The Ethiopian Capital Market Authority (ECMA) has licensed five new capital market service providers, including Ethiopia’s first investment banks, in what it described as a “significant step” for the country’s financial sector. The licensing, granted on March 21, increases the total number of licensed service providers from four to nine, according to ECMA.
The newly licensed institutions include CBE Capital S.C. and Wegagen Capital Investment Bank S.C., both designated as investment banks. Additionally, Ethio-Fidelity Securities S.C. has been licensed as a securities dealer, while HST Investment Advisory Services PLC and Equation Securities Investment Advisor PLC have been approved as securities investment advisors.
ECMA stated that the licensing “marks a historic milestone” by introducing investment banks into Ethiopia’s financial sector, which had previously only included advisory firms. The authority said the new licensees are expected to “diversify and strengthen” the capital market by offering services such as securities brokerage, investment advisory, and capital raising.
The inclusion of investment banks, ECMA noted, follows regulatory reforms, particularly the National Bank of Ethiopia (NBE) Directive SBB/92/2024, which permits commercial banks to acquire full ownership of capital market service providers. ECMA said CBE Capital and Wegagen Capital, both affiliated with Commercial Bank of Ethiopia and Wegagen Bank, respectively, are the first institutions to operate under this directive.
The authority also highlighted what it called the “increasing role of women” in Ethiopia’s financial sector, stating that two of the newly licensed firms—Wegagen Capital Investment Bank S.C. and HST Investment Advisory Services PLC—are led by female CEOs. ECMA described this as an indication of “growing inclusivity” in the sector.
Speaking at the licensing event, ECMA Director General Hana Tehelku said the newly licensed institutions must view their licenses as a “responsibility to the future of Ethiopia’s capital market” and operate with “utmost integrity and commitment.”
ECMA, established in 2021, is responsible for regulating and overseeing the country’s capital market. The authority was formed as part of Ethiopia’s broader financial sector reform to create a regulatory framework for investment and securities trading. Since its inception, ECMA has played a critical role in setting up Ethiopia’s capital market infrastructure, licensing service providers, and preparing the legal framework necessary for a functional securities exchange.
The Ethiopian Securities Exchange (ESX), a key initiative supported by ECMA, was officially launched on January 10, 2025, after years of preparation. Prime Minister Abiy Ahmed, during the inauguration, described the exchange as a “historic milestone” and called on investors to “invest your capital in Ethiopia.” AS
