Ethiopia’s capital market regulator has granted an investment banking license to Prime Capital S.C., in the latest step toward building the country’s nascent securities market.
The Ethiopian Capital Market Authority (ECMA) said on Tuesday it had issued a Capital Market Service Provider (CMSP) license to the firm under the non-banking investment banking category, bringing the total number of licensed investment banks to six and overall service providers to 17.
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The regulator also approved four appointed representatives and nine board directors for the company, as part of efforts to strengthen institutional capacity and governance in the emerging market.
ECMA Director General Hana Tehelku said investment banks would play a key role in facilitating transactions, supporting capital raising and helping investors make informed decisions.
Ethiopia, which is in the early stages of establishing a capital market, has been issuing licenses to key intermediaries ahead of the expected launch of trading activities. Authorities have framed the initiative as part of broader economic reforms aimed at diversifying financing sources and boosting private sector growth.
The regulator urged licensed firms to uphold corporate governance standards, ensure compliance with market rules and prioritise investor protection.
The East African nation has long relied on a bank-dominated financial system and is seeking to expand alternative financing channels as part of its wider reform agenda.
