The Ethiopian Capital Market Authority (ECMA) has issued a strict warning to individuals and groups promoting or selling securities—especially shares of joint stock companies—through social media without a proper license.
According to ECMA, several people have recently been offering, marketing, and advertising investment opportunities online without approval. These activities violate the Capital Market Proclamation No. 1248/2013 and the Capital Market Service Providers Licensing and Supervision Directive No. 980/2016, which require all capital market service providers to be licensed and supervised by the Authority.
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ECMA reminded the public that engaging in regulated capital market activities without a license is a serious crime, punishable by up to 15 years of rigorous imprisonment, as stated in Article 106 of the Proclamation.
The Authority says it is actively monitoring social media and other platforms to identify anyone conducting illegal capital market activities. ECMA warned that those who do not stop immediately will face strict legal action.
ECMA also urged the public to be very careful when dealing with individuals or groups advertising investment opportunities online. The Authority advised everyone to verify whether a person or organization is officially licensed before communicating or making any financial commitment.
Licensed service providers—including brokers, dealers, and investment advisors—can be checked on ECMA’s official website at ecma.gov.et, or by visiting the ECMA office in person.
The public is encouraged to report illegal brokers and suspicious activities through the following contact details:
Tel: +251-11557-8250 / +251-11557-8310
Email for complaints: complaints@ecma.gov.et
