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Ethiopia Licenses New Capital Market Firms, but Trading Still Lags

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Ethiopia’s capital market adds 3 new players, including its first private limited investment bank. Market activity, however, remains subdued.

October 1, 2025
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Team Shega

Addis Ababa, Ethiopia

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Ethiopia’s fledgling capital market gained three new entrants this week, even as activity on the ground remains largely subdued.

The Ethiopian Capital Market Authority announced licenses for First Addis Investment Bank P.L.C., the first private limited company to secure an investment banking license. Two other firms, Zuri Capital S.C. and Ignite Capital P.L.C., were cleared to provide securities investment advisory services.

Until now, most investment banks in Ethiopia have been shareholding companies spun off from commercial lenders. The arrival of a private limited player marks a shift in the makeup of the still-nascent sector.

Despite the growing roster of licensed institutions now in double digits the market has yet to find its footing. On Tuesday, Wegagen Capital S.C., the country’s first licensed investment bank, disclosed a net operating loss of 10.19 million birr in its inaugural general assembly. The firm, only months into operation, also announced plans to nearly triple its paid-up capital to one billion birr in a bid to stabilize growth.

For newer players, the challenge will be to enter cautiously while signaling ambition. Zuri Capital, with a paid-up capital of 1.89 million birr and 10 shareholders, is betting on a dual strategy. Chief executive Officer Yoseph Getachew said the firm aims to support market development while leveraging its background in corporate finance and private equity.

“Our experience will definitely complement the next phase,” he told Shega, noting that Zuri had offered advisory services for nearly three years before stepping into the regulated space.

The Ethiopian Securities Exchange (ESX) officially executed its inaugural trades back in July with shares of Wegagen and Gadaa Bank during a ceremony that marked the listing of government T-bills on the Exchange.

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