Ethiopia: News Capital Market Authority Investigating Real Estate Pioneer Ermias Amelga for Alleged Unauthorized Securities Offerings

Addis Abeba — The Ethiopian Capital Market Authority (ECMA) has publicly confirmed that business mogul Ermias Amelga and Genesis Investment Services PLC are under official investigation for allegedly raising funds through unauthorized securities offerings. The regulatory body made the announcement in a detailed public notice issued on Wednesday.

The authority said ECMA, established under Proclamation No. 1248/2021, is mandated to ensure the orderly, fair, and transparent operation of Ethiopia’s emerging capital market. In the notice, the Authority reaffirmed its commitment to protecting investors and enforcing compliance with capital market regulations.

“Among those under investigation are Mr. Ermias Amelga and a company named Genesis Investment Services PLC,” the statement reads, “these investigations are being conducted in line with the principle of ‘the right to be heard’ as per the FDRE Constitution.”

It further emphasized that no securities may be publicly offered or advertised without prior approval under the Public Offering and Trading Directive No. 1030/2024. Entities must also complete formal commercial registration before applying for a capital market service provider license.

To strengthen enforcement, ECMA said it has established a dedicated law enforcement task force in cooperation with the Ministry of Trade and Regional Integration, Financial Intelligence Services, Ministry of Justice, and the Federal Police Commission. A memorandum of understanding was signed on 29 February 2024, formalizing this collaboration.

“We urge the public to verify with ECMA whether individuals and organizations claiming to be licensed… are indeed licensed by the Authority before engaging with them and making payments.”

The Authority is also calling on the public to report any individuals or companies offering unlicensed capital market services.

Ermias Amelga has had several run ins with law enforcement in the past, and was facing charges of corruptions in case by fielded by state prosecutors in January 2019. Prosecutors accused Ermias, founder of the troubled Access Real Estate S.C, of selling Imperial Hotel, which he and other shareholders once owned, at a price of 75 million birr, which the police said was an “inflated price,” charges that were terminated a year later.