Ethiopia has issued its first-ever investment banking licenses to two local firms, marking a significant milestone in the country’s economic liberalization agenda under Prime Minister Abiy Ahmed.
The Ethiopian Capital Market Authority (ECA), the state financial regulator, announced on Friday that it awarded licenses to CBE Capital and Wegagen Capital Investment Bank—subsidiaries of Commercial Bank of Ethiopia and Wegagen Bank, respectively.
The move is a key step toward developing a more diverse and resilient capital market in the Horn of Africa nation, home to over 100 million people.
CBE is the country’s largest state-owned bank, while Wegagen was recently listed on Ethiopia’s fledgling stock exchange. The ECA emphasized that these licenses are “pivotal to the creation of a more diversified and robust capital market.”
Since taking office in 2018, Abiy Ahmed has prioritized opening up Ethiopia’s tightly regulated economy. His reforms have attracted foreign investors, including Kenya’s Safaricom, which secured Ethiopia’s first private telecom license in 2021.
The ECA also issued advisory and brokerage permits to three firms: Ethio-Fidelity Securities, HST Investment Advisory Services, and Equation Securities Investment Advisor.
The announcement comes as Ethiopia continues to float its currency, the birr, and expand access to previously restricted sectors, including financial services.
