Addis Ababa, May 2025 – As part of its effort to operationalize Ethiopia’s newly established securities exchange and develop a vibrant financial market ecosystem, the Ethiopian Capital Market Authority (ECMA) has officially licensed two pioneering investment banks and a set of market dealers to facilitate trading, underwriting, and financial advisory services.

The two newly licensed investment banks are:

• CBE Capital S.C., a joint venture between the Commercial Bank of Ethiopia (CBE) and Dallol Capital, and
• Wegagen Capital, established by Wegagen Bank S.C.

These institutions are now authorized to provide full-spectrum investment banking services, including brokerage, underwriting, mergers and acquisitions (M&A) advisory, portfolio management, and capital raising for companies planning to list on the Ethiopian Securities Exchange (ESX).

In addition, ECMA has approved the operation of several market intermediaries, including Ethio-Fidelity Securities, which will act as a licensed securities dealer. These firms are expected to play a crucial role in facilitating the buying and selling of financial instruments, enhancing market liquidity, and supporting investor participation—both institutional and retail.

According to ECMA, the licensing of these financial firms is a significant step in building the market infrastructure required for a successful and regulated capital market. It is also part of the broader reform strategy aimed at diversifying financing options for Ethiopian businesses and providing investors with new avenues to mobilize and grow capital.

“These developments are aligned with Ethiopia’s financial sector liberalization and the vision of creating a resilient, transparent, and inclusive capital market that attracts long-term investment,” said a senior ECMA representative.

The authority has also introduced regulatory sandboxes and is currently developing additional frameworks to guide fintechs, rating agencies, custodians, and investment advisors as part of its phased implementation of capital market institutions and services.

As the Ethiopian Securities Exchange (ESX) continues to gain momentum, the establishment of licensed investment banks and dealers is expected to foster investor confidence, improve capital allocation efficiency, and support the government's broader economic transformation agenda.