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Wegagen Capital Goes into Business as Ethiopia’s First Investment Bank

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Wegagen Capital Investment Bank S.C. announced the launch of operations last night at the Hilton Addis two months after securing its investment banking license.

June 4, 2025
Etenat Awol Avatar

Etenat Awol

Addis Ababa, Ethiopia

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Three weeks after receiving its trading membership certificate from the Ethiopian Securities Exchange (ESX) and just over two months after securing its investment banking license Wegagen Capital Investment Bank S.C. announced it was starting operations last night at the Hilton Hotel.

The launch marks pivotal movement in Ethiopia’s embryonic capital markets, as Wegagen Capital starts operation as one of the country’s first licensed investment banks. It is helmed by Brutawit Dawit, a prominent figure in Ethiopia’s banking industry, known for her role in the formation of Wegagen Bank and as the former president of Zemen Bank.

Brutawit congratulated stakeholders and emphasized that Wegagen Capital carries both the honor and responsibility of setting a new standard for investment banking in Ethiopia, rooted in integrity, innovation, and impact. She described the bank’s inception as a response to Ethiopia’s urgent need for specialized capital market services capable of unlocking capital, catalyzing investment, and accelerating national development.

The Bank looks to offer a full suite of investment banking services, including capital raising through securities, underwriting for IPOs, strategic advisory for mergers and acquisitions, corporate restructuring, brokerage and trading services, and securities trading guidance. The firm aims to serve a broad spectrum of clients, government institutions, public enterprises, corporations, and high-net-worth individuals, with a focus on long-term value creation.

Brutawit also underscored that Wegagen Capital maintains an independent governance and operational structure, distinct from Wegagen Bank, which she described as creating opportunities for collaboration with a wider array of financial institutions.

With an initial paid-up capital of 385 million Birr, Wegagen Capital is majority-owned by Wegagen Bank S.C. and other institutional investors. Wegagen Bank’s CEO Aklilu Wubet (PhD) serves as chairman of the board of directors in the newly launched investment bank

Commercial banks venturing into the investment banking market segment are required to establish an independent subsidiary to ensure that the two businesses remain wholly separate.

ESX CEO Tilahun Kassahun urged the firm to take an inclusive approach and nurture the growth of the emerging market. 

“Our capital market is a complex ecosystem. Wegagen must move beyond an elitist model and work toward meaningful capital formation. It’s not just about generating millions in profit, it’s about broader participation and impact,” he said.

While it has been nearly six months since Prime Minister Abiy Ahmed (PhD) rang the bell to launch the country’s maiden exchange, market activity has remained muted. Ethiopia’s first IPO for a 10% stake in the state-owned telecom operator also did not meet initial expectations, managing to sell only 10.7% of its 100 million ordinary shares. The start of operations by the two licensed investment banks could usher in increased activity in the forming market.

CBE Capital S.C. is the other investment licensed by the Ethiopian Capital Market Authority.