The Ethiopian Capital Market Authority (ECMA) has issued a public warning against an unregistered share sale being promoted by “Gezana General Trading Joint Stock Company,” stating that the company has been offering securities to the public without regulatory approval.
According to the Authority, Gezana General Trading has been advertising investment opportunities linked to the planned purchase of multiple assets in northern Ethiopia, including two schools in Mekele, branches of a credit and savings institution in Mekele, Shire, Adwa, Rama, and Feresmay, two hospitals in Mekele, vehicle dealerships in Mekele and Shire, a Bajaj assembly workshop in Mekele, and a media production business in Mekele.
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The company reportedly claimed that investors would become founding shareholders of the institution and receive a 15% net profit dividend for three consecutive years, alongside priority access to loans, training programs, and employment opportunities.
However, ECMA stated that the shares being offered have not been registered with the Authority as required under Ethiopia’s capital market laws. The Authority also noted that the company has been distributing advertisements promoting the share sale across social media platforms, particularly Facebook, without obtaining prior regulatory approval.
The regulator emphasized that offering unregistered securities to the public is prohibited under Article 4 of the Public Offering and Trading of Securities Regulation No. 1030/2017 and constitutes a criminal offense under Article 106 of the Capital Market Proclamation No. 1248/2013. Additionally, the dissemination of unapproved securities advertisements violates Article 53 of the same regulation.
ECMA confirmed that an administrative investigation into the company is ongoing and urged the public to avoid purchasing the unregistered shares or making payments to any sales agents connected to the offering.
The Authority reiterated its commitment to strengthening market oversight and investor protection as Ethiopia’s capital market ecosystem continues to develop. It also called on the public to cooperate by reporting suspicious or illegal investment activities.
