The Ethiopian Capital Market Authority (ECMA) has granted a Capital Market Service Provider (CMSP) license to United Capital Financial Services PLC, a subsidiary of Nigeria-based United Capital Group, making it the first foreign investment bank to establish a licensed subsidiary in Ethiopia.
The license, issued on June 5, authorizes the company to operate under the Investment Banking category. ECMA also approved the appointment of five board directors and licensed four appointed representatives within the company.
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The approval brings the total number of licensed Capital Market Service Providers in Ethiopia to 18, while the number of licensed investment banks has increased to seven, reflecting the continued expansion of the country’s capital market ecosystem.
The licensing follows months of regulatory review and legal vetting involving ECMA, the Ethiopian Investment Commission, and other relevant government institutions. According to ECMA Director General, Hana Tehelku, the Authority conducted extensive due diligence, including verification of the firm’s regulatory standing with Nigerian authorities before granting approval.
United Capital will operate through its wholly owned Ethiopian subsidiary, becoming the first foreign institution to receive an investment banking license in the country. The company has reportedly injected more than $1.5 million in capital to support its Ethiopian operations.
Speaking at the licensing ceremony, Hana described the entry of the pan-African financial institution as a historic milestone in the development of Ethiopia’s capital market. She said the move demonstrates growing confidence in the country’s financial reforms and the credibility of its emerging market infrastructure.
“The development reflects growing recognition of Ethiopia’s market potential and institutional progress,” she noted, adding that international participation can help strengthen market depth, capacity, and regional financial integration.
Hana also emphasized that the Authority expects the firm’s contribution to extend beyond financial capital. She said United Capital is expected to help build local capacity by hiring, training, and empowering Ethiopian professionals, contributing to the development of domestic expertise in investment banking, financial analysis, and regulatory compliance.
According to ECMA, United Capital may eventually expand its activities beyond investment banking and operate under additional capital market service categories, including collective investment scheme management, subject to regulatory approval.
Commenting on the development, Peter Ashade, Group Chief Executive Officer of United Capital Group, described the license as a milestone for both Ethiopia and Nigeria and a reflection of strengthening pan-African financial cooperation.
“We are honored to be the first foreign institution licensed to provide financial services in Ethiopia,” Ashade said, adding that the company aims to contribute to the growth of Ethiopia’s capital market through human capital development, capacity building, and professional training.
The company’s Africa Director, Ejikeme Okoli, said the firm’s experience across multiple African markets positions it to support the development of Ethiopia’s financial sector and aligns with its broader continental expansion strategy.
ECMA also revealed that it is collaborating with the Nigerian Securities and Exchange Commission on regulatory benchmarking and capacity-building initiatives, signaling deeper cooperation between the two countries’ capital market institutions.
The licensing comes as Ethiopia continues to implement reforms aimed at developing a modern capital market capable of mobilizing long-term capital, attracting investment, and supporting private sector-led growth.
