Ethiopia has officially issued its first investment bank licenses, marking a historic step towards developing the country’s financial market. The Capital Market Authority (ECMA) granted licenses to CBE Capital S.C. and Wegagen Capital S.C., both established as independent subsidiaries spun off from their parent commercial banks.
The announcement was made during a ceremony at the Sheraton Addis Hotel, where three additional capital market service licenses were revealed. Ethio Fidelties Securities S.C. emerged as Ethiopia’s first securities dealer, setting the stage for a new era in the nation’s capital market.
Breaking New Ground in Ethiopian Finance
Mamo Mihretu, the Governor of the National Bank of Ethiopia, congratulated the firms, describing the milestone as a critical moment in the nation’s financial evolution. He highlighted how these licenses would boost financial inclusivity and contribute to economic growth.
Abebawu Zewude, Board Chairman of Ethio Fidelties Securities S.C., expressed excitement over the approval, stating, “Our shareholders are individuals involved in the local financial sector and international trade. 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.”
Women at the Helm of Change
Hana Teheklu, Director General of ECMA, was delighted to note that two of the five newly licensed firms are led by women CEOs, an encouraging sign of progress in gender inclusivity within the financial sector.
The Capital Market Authority has now granted nine licenses in total, including the two recent investment securities advisor licenses, making it clear that Ethiopia is steadily opening its doors to a broader financial ecosystem.
