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Ethiopia Expands Capital Market With Three New Licenses

Ethiopia’s capital market regulator has licensed three new service providers including an investment bank and two securities advisers raising the number of authorized intermediaries to 11 as the country pushes ahead with building its nascent securities industry.

Nigat Post Staff Writer
3 min read
Ethiopia Expands Capital Market With Three New Licenses

Ethiopia’s capital market regulator has granted licenses to three new service providers, underscoring efforts to deepen participation in the country’s fresh securities industry.

The Ethiopian Capital Market Authority (ECMA) approved First Addis Investment Bank PLC the first non bank investment bank, and Ignite Capital PLC along with Zuri Capital S.C. as securities investment advisers. The move brings the total number of licensed capital market service providers (CMSPs) to 11, up from eight in September.

The licensing, announced Wednesday at ECMA’s headquarters in Addis Ababa, comes just three months after the Ethiopian Securities Exchange (ESX) began trading shares and government securities the country’s first formal securities market activity.

The new entrants have a critical role in advancing Ethiopia’s capital market. We expect them to contribute actively to the development of an inclusive, transparent, and resilient financial system Hana Tehelku, ECMA’s director general.

A Step Toward Market Depth

Since March 2024, ECMA has been gradually opening the sector, approving investment advisers, brokers, dealers, and investment banks. Major financial institutions, including the Commercial Bank of Ethiopia and Wegagen Bank, have already secured investment banking licenses through subsidiaries.

Under ECMA’s 2024 directive, licensed service providers must meet capital adequacy, governance, and compliance standards, prerequisites for applying to become ESX members. Only licensed firms are eligible to trade, broker, or underwrite securities on the exchange.

Building a Modern Capital Market

Ethiopia established ECMA in 2021 as part of broader financial-sector liberalization. The authority licensed ESX in December 2024, with Prime Minister Abiy Ahmed inaugurating the exchange in January 2025. The bourse is expected to expand to corporate bonds and equities in the coming years.

Still, analysts caution that low private-sector participation and limited investor awareness could slow the development of market depth.

For now, the addition of three new licensed providers reflects regulatory momentum aimed at creating a stronger pipeline of intermediaries capable of channeling capital into Ethiopia’s fast-growing economy.