Addis Ababa, Ethiopia – March 21, 2025 – The Ethiopian Capital Market Authority (ECMA) has announced the licensing of five new capital market service providers (CMSPs), marking a significant expansion of Ethiopia’s financial markets.
The newly licensed CMSPs include:
- CBE Capital S.C. – Investment Bank
- Wegagen Capital Investment Bank S.C.- Investment Bank
- Ethio-Fidelity Securities S.C. – Securities Dealer
- HST Investment Advisory Services PLC – Securities Investment Advisor
- Equation Securities Investment Advisor PLC – Securities Investment Advisor
This expansion increases the total number of licensed CMSPs from four to nine and is expected to diversify and strengthen Ethiopia’s capital market. These new entities will provide essential services such as investment banking, securities brokerage, dealing, and investment advisory.
“This development is a strong indication that the Ethiopian capital market is maturing and preparing to serve the growing needs of both local and international investors,”
the ECMA stated in the release.
The licensing of CBE Capital S.C. and Wegagen Capital Investment Bank S.C. is particularly noteworthy, as these institutions are substantially owned by major commercial banks, namely the Commercial Bank of Ethiopia (CBE) and Wegagen Bank. This development follows the National Bank of Ethiopia (NBE) Directive SBB/92/2024, which permits banks to acquire up to 100% equity in capital market service providers, fostering greater financial sector expansion and diversification.
The press release also highlighted the growing role of women in Ethiopia’s financial sector, with Wegagen Capital Investment Bank S.C. and HST Investment Advisory Services PLC being led by female CEOs.
“Their leadership exemplifies the growing inclusivity and diversification of the Ethiopian capital market, reinforcing the importance of gender representation in shaping the country’s financial landscape,”
the release noted.
In her remarks at the licensing event, Hana Teklegiorgis, the Director General (DG) of the ECMA, congratulated the new licensees and emphasized the weight of their new responsibility:
“The Director General stressed that the new CMSPs must operate with the utmost integrity and commitment, and their role in shaping the market will be crucial to ensuring the success and sustainability of Ethiopia’s financial sector.”
The ECMA views these new licenses as crucial to the future of Ethiopia’s capital market. The authority is committed to providing the necessary support and regulatory framework for the continued success of the market and its participants. “The ECMA also reaffirms its commitment to building a market that can foster innovation, attract investments, and contribute to sustainable economic development,” the release stated.
