Addis Ababa, Ethiopia – The Ethiopian Capital Market Authority (ECMA) marked a major milestone in the country’s financial development by granting licenses to five new capital market service providers (CMSPs) on March 21, 2025. This event increases the number of licensed CMSPs from four to nine, signaling a significant expansion in Ethiopia’s capital markets.

The newly licensed entities include:

1. CBE Capital S.C. – Investment Bank
2. Wegagen Capital Investment Bank S.C. – Investment Bank
3. Ethio-Fidelity Securities S.C. – Securities Dealer
4. HST Investment Advisory Services PLC – Securities Investment Advisor
5. Equation Securities Investment Advisor PLC – Securities Investment Advisor

The introduction of these five new firms is pivotal to diversifying Ethiopia’s financial markets, with services ranging from investment banking to securities dealing and advisory. This expansion helps lay the groundwork for a more mature and competitive capital market, offering improved capital raising and investment opportunities, both for local and international investors.

For the first time, Ethiopia sees the entry of investment banks and securities dealing companies into the market. This move marks a transformative period for the country’s financial sector, which previously only had investment advisers as licensed providers.

Notably, CBE Capital S.C. and Wegagen Capital Investment Bank S.C. stand out, as both are owned by major commercial banks – the Commercial Bank of Ethiopia (CBE) and Wegagen Bank, respectively. These banks were given permission to own up to 100% equity in capital market service providers under the recently issued National Bank of Ethiopia Directive SBB/92/2024, which enhances the integration of banking services within the capital market framework.

The new entrants not only strengthen the market’s infrastructure but also reflect the growing influence of women in Ethiopia’s financial industry. Both Wegagen Capital Investment Bank and HST Investment Advisory Services PLC are led by female CEOs, showcasing a positive shift toward greater gender inclusivity.

In her address at the licensing ceremony, the Director-General of the Ethiopian Capital Market Authority emphasized the responsibility these new service providers have in maintaining the integrity and growth of the capital market. She underscored that their operations would be critical to fostering investor confidence, increasing market liquidity, and ensuring the success and sustainability of Ethiopia’s financial system.

The ECMA remains committed to developing a robust, diversified, and well-regulated market. As Ethiopia’s capital market continues to grow, it is expected to attract more investments, support sustainable economic development, and position the country as an increasingly attractive destination for both local and international investors.

This licensing event marks just one step in the larger effort to build a dynamic financial ecosystem capable of supporting Ethiopia’s economic aspirations. With the growing number of licensed CMSPs, the country is laying the foundation for a prosperous financial future.