Zemedeneh Nigatu, a seasoned Ethiopian-American investment advisor, has been appointed the founding Chief Executive Officer of CBE Capital S.C., following the company’s receipt of an investment banking license from the Ethiopian Capital Markets Authority (ECMA) on March 21. The license makes CBE Capital one of the country’s first officially recognized investment banks.
The same day also saw Wegagen Capital S.C., a subsidiary of Wegagen Bank, receive a similar license, signaling growing momentum in Ethiopia’s efforts to establish a modern capital market system.
CBE Capital is a joint venture majority-owned by the Commercial Bank of Ethiopia (CBE), one of the country’s largest state-owned financial institutions, and Dallol Capital, a private investment firm. The firm is expected to offer a range of services including underwriting initial public offerings (IPOs), managing mergers and acquisitions, and trading financial instruments such as stocks and bonds. Future plans include expanding into portfolio management and Islamic finance.
Zemedeneh brings decades of experience to the role. He previously served as the Managing Partner for Ernst & Young in East Africa, where he played a key role in advising on large-scale investments across sectors including telecommunications, aviation, and infrastructure. He is also the chairman of Fairfax Africa Fund, a U.S.-based private equity firm that has been active in facilitating investment across the African continent.
With Ethiopia’s population exceeding 130 million and its economy undergoing liberalization reforms, the establishment of investment banks is seen as a critical step toward developing a functional capital market. According to projections, Ethiopia’s GDP could reach $1.6 trillion by 2050 if reforms continue and private sector investment increases.
Speaking about the launch, Zemedeneh stated that the company aims to help drive financial market development in the country. “We are honored to pioneer investment banking services in Ethiopia,” he said.
Abie Sano, Chairman of CBE Capital and President of the Commercial Bank of Ethiopia, emphasized the significance of the license. “This achievement represents a significant step forward in Ethiopia’s financial markets transformation and positions CBE Capital to make meaningful contributions to the nation’s economic growth,” he said.
With these developments, Ethiopia is poised to enter a new phase in its financial sector, introducing new tools for capital raising and investment, and opening the door to increased private sector participation in the economy.
