Ethiopian Capital Market Authority Grants Licenses to Five New Capital Market Service Providers

Addis Ababa, March 21, 2025 (POA)– The Ethiopian Capital Market Authority (ECMA) has granted licenses to five new capital market service providers (CMSPs) in a significant step toward the development and expansion of Ethiopia’s financial markets.

The move is part of ECMA’s broader effort to develop a well-regulated, transparent, and dynamic financial ecosystem in the East African nation.

The new licenses granted designated services are: CBE Capital S.C. for Investment bank, Wegagen Capital Investment Bank S.C. for Investment bank, Ethio-Fidelity Securities S.C. for Securities Dealer, HST Investment Advisory Services PLC for Securities Investment Advisor and Equation Securities Investment Advisor PLC for Securities Investment Advisor.

These new additions are pivotal to the creation of a more diversified and robust capital market in Ethiopia, providing essential services ranging from investment banking and advisory to securities brokerage and dealing, according to the Authority.

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, it was indicated.

Until now, the Ethiopian capital market has been limited to four licensed service providers, all of which have operated solely as investment advisers.

With the inclusion of an investment bank and a securities dealing company, this expansion represents a transformative moment for the market, the ECMA further stated.

Accordingly, these new service providers will contribute to the market’s depth and efficiency, allowing for better capital raising and investment opportunities, and introducing much-needed diversity into the financial landscape.

Moreover, the license was issued in accordance with Capital Market Service Providers Licensing Directive No. 980/2024, which outlines the qualifications, ethical standards, and operational criteria required for firms seeking to offer investment advisory services.