Mered Besrat, founder and CEO of Pragma Investment Advisory, stands as a key figure in Ethiopia’s upcoming capital market. At just 31, he skillfully uses his personal and company’s social media presence to share insights and provide updates on the sector’s latest developments. His expertise is regularly sought out by media outlets, where he offers informed commentary on broader economic issues.
Behind the scenes, Mered is working on launching an investment bank, with aspirations of establishing it as Ethiopia’s premier institution in the field.
Yet, Mered’s interest in the capital market dates back long before Ethiopia officially announced its establishment in late 2018. His passion for the field runs deep—his close friends even called him a “capital market nerd” well before his path as an investment banker was cemented.
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On a Thursday afternoon, Mered Besrat Fikreyohannes was quickly wrapping up a one-on-one meeting in his cozy advisory office at Meskel Flower. Surrounded by walls plastered with sticky notes a flickering screen broadcasting Bloomberg Business News intermittently catches his gaze.
The CEO of Pragma Investment Advisory has always had the capital market-focused TV channel as his go-to source of information— nearly 15 years before he was poised to participate in it.
Mered is the firstborn of three brothers raised in Addis Ababa by civil servant parents. He completed his formative education at St.Joseph’s School and embarked on his collegiate odyssey at Addis Abeba University (AAU).
Despite his early interest in the capital market, dating back to his high school days, Mered was initially set to become a civil engineer. However, fate had other plans. He ended up leaving the five-year program after just one semester.
A year-and-a-half hiatus ensued served to be a much-needed break for contemplation and reflection.
“I had to figure out what I want to do with my career,” Mered told Shega.
Abraham Assefa, a close friend who is pursuing a PhD at the University of Notre Dame, recollects fondly of his early interactions with Mered when both were freshman students.
“He finished the whole set of Encarta Encyclopedia,” he recalls with some amazement.
Abraham quickly recognized an intense passion for learning and a relentless work ethic in the early days of a friendship that has lasted more than 13 years. Impassioned discussions on business and entrepreneurship helped to create a strong bond between the two young men.
“He genuinely believes in the power of public service,” Abraham says.
Mered describes the eighteen-month break as an intense period of exploration into the type of man he wanted to become. Combing through a catalog of books, he found himself increasingly enamored by the intricacies of finance and economics.
“I became fascinated with central banking,” Mered recalls.” The creation of currency its distribution and underlying pillars intrigued me.”
In the early months of his second year of contemplation, Mered’s academic path began to crystalize and he was eager to return to school not just for one but two degrees studying both day and night.
Three years of constant study would yield two degrees, one in Global Studies and International Relations from New Generation University College and another in Business Administration from Lincoln University.
He is older than his years
Mered describes the business degree as the most important scholarship of his life. It had removed any qualms he had choosing between political science and economics.
“Economics paints a clear picture of the major driving forces, beyond ideology and ‘isms’” he says.
His rapturous attention during the night classes was noted by his predominantly middle-aged classmates.
Ezana Getachew, an importer who shared the classroom with Mered remembers him as a cooperative intelligent man who exhibited insights beyond his age.
“He could have passed for my son,” the businessman remembers.
Ezana observed a keen understanding of a broader global context in his young studious classmate. The importer respects Mered’s acumen and hard work daring to offer only a single bit of advice.
“I think he should start a family,” Ezana says in a humorous tone.
The bachelor, however, believes that there’s much to accomplish before settling down.
The Path to Investment Banking
As an ode to his love for capital market or perhaps due to an invisible hand of sorts, Merid, cofounded Pragma Investment Advisory in 2018, two years after graduation bootstrapping a total of 20,000 birr with his former managing partner Kalid Mawi.
The firm would make its mark by offering investment management, corporate finance, market research, and risk management services. Things would take a lucrative twist as serial entrepreneur Addis Alemayheu decided to back Pragma after trying their services as a client six years ago.
“Addis is a real gate opener,” says Mered.
Addis met Mered at an entrepreneurship workshop and was immediately impressed by the young man’s grit. He encountered a rare sense of focus, organization, and determination in Mered, rarely seen among his peers. The serial entrepreneur relays feeling a sense of wisdom beyond Mered’s age—a common sentiment among many who meet him.
“He is older than his years,” says Addis.
An ambitious man himself the serial entrepreneur appreciated the preparation, knowledge, and presentation exhibited when Mered pitched him the idea.
“I had to bet on my gut,” Addis told Shega.
Some of Pragma’s clientele includes Huawei, Legatum a global investment firm, and Effoi Pizza, one of the most recognizable Pizza chains in Addis Ababa.
Fast forward to 2024, Pragma is preparing to enter the capital market, and Addis feels he won the bet.
Pragma is now poised to evolve into Pragma Capital, having transitioned into a share company and pursuing an investment banking license under the Ethiopian Capital Market Authority (ECMA).
Following the government reshuffle in 2018, Prime Minister Abiy Ahmed (PhD) initiated a series of economic reforms, which included plans to establish a Capital Market Authority. ECMA was officially established in 2021 under Proclamation No. 1248/2021, which serves as the legal framework for the development and regulation of the market in Ethiopia.
“That was an incredibly exciting time,” Mered recalls.
As the Market draws near with each new directive, an inevitability nudging Mered throughout his years is set to be realized as Pragma’s trajectory locks in on the budding market.
In late 2023, Pragma assembled a formidable board of directors, with extensive experience in finance and investment across international markets. The license he is after requires a minimum paid-up capital of 25 million birr and is currently raising capital.
Its notable board directors include Patrice Baker a former JP Morgan executive with over two decades of private equity investment, Papa Madiaw Ndiaye Board Chairman of Ecobank, Amity Weiss a former CEO of Komari Beverage and Managing partner at Melela Partners, prominent Ethiopian business tycoon Tedros Abraham as well as Paul Reynolds, investment Banker at Rothschild with over 3 decades of experience as Pragma’s board chairman.
“Our goal is to become Ethiopia’s premier investment bank,” Mered says. He expects to cultivate a reputation of trust, independence, and client-centeredness as a decade-long journey comes to fruition.
Mered envisions Pragma becoming a source that combines global best practices and local insights to provide tailored solutions to its clients.
While the 31-year-old has long been fascinated with capital markets, he did not see it returning to Ethiopia at this time.
Many Ethiopians have sought to participate in international financial markets as their home country lacked an accommodative space for their inclinations. Mered was not deterred by the market’s absence in the country as he studied the nooks and crannies from afar.
His fascination with capital markets which bordered on obsession during his teenage and university years often led to teasing from his peers, who labeled him a “capital market nerd”.
But Addis, teasingly says “It actually started while he was in his mother’s womb.”
Mered chalks it down to a need to find something he was good at as an average student learning at a high-achieving school like St.Joseph’s.
He says an early curiosity about finance, not just capital markets, allowed him to inevitably dive into modes of financial mobilization.
“Markets facilitate financial mobilization,” Mered asserts.
A Crisis Ignites Curiosity
Mered’s deep interest in finance is rooted in the sense of bewilderment he experienced during the 2008 financial crisis, while he was in 10th grade. He grappled with trying to understand how billions of dollars could vanish overnight.
Understanding the Great Recession meant hours of news consumption which saw him rely on Bloomberg more and more.
‘It introduced me to a wide range of financial concepts, such as bonds, financial markets, and securities,” he recalls.
That initial perplexity sparked his enduring financial curiosity. The aftermath of the crisis continued for several years, and Mered’s newfound interest only deepened during his later high school years.
“It was baffling how billions of dollars could simply vanish,” he recalls.
A web of avarice that involved investment bankers, predatory lenders, credit agencies, and loose oversight led to the greatest financial collapse in eight decades
Mered, a believer in the enduring nature of human behavior, argues that while circumstances change, the fundamental aspects of human nature remain constant. He contends that to truly understand the world, one must view it through a financial lens.
With his characteristic skepticism towards theories, he maintains that time is the agent of change, not human nature itself.
Indeed, time will reveal whether his years of preparation will bear fruit as the markets deliver their verdict. With the journey behind him, Mered’s next steps will be for the public to see. Will he become a prolific investor and cement his name in the financial markets?
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