Ethiopia Issues First Investment Bank Licenses

Ethiopia's Capital Market Authority has given its first investment bank licenses. CBE Capital S.C. and Wegagen Capital S.C. have been established as independent subsidiaries, spun off from their respective commercial banks.

At a ceremony held at the Sheraton Addis Hotel, three other capital market service licenses were also announced. Ethio Fidelties Securities S.C. became Ethiopia’s first securities dealer in the nascent capital market.

Mamo Mihretu, Governor of the National Bank of Ethiopia, congratulated the firms, emphasizing their role in advancing financial inclusivity and fostering economic growth. He noted that the licenses represent a significant milestone in Ethiopia’s financial history.

“Our shareholders are individuals involved in the local financial sector and international trade,” said Abebawu Zewude, Board Chairman of Ethio Fidelties Securities S.C. “We have been waiting for this license for a while. We have around 40 shareholders, a paid-up capital of 50 million birr, and a vision to become a leading player in the sector,” he added.

“We aim to support company owners and investors who have long faced challenges and uncertainties when issuing and selling shares,” Abebawu told Shega.

Hana Teheklu, Director General of ECMA, expressed her delight that two of the five newly licensed firms are led by women CEOs.

The other two licenses were issued to investment securities advisors, bringing the total number of ECMA-approved licenses to nine.