Ethiopia has issued its first investment banking licenses, marking a significant step in the government’s push to open the economy to private capital.
The Ethiopian Capital Market Authority (ECA) awarded the licenses to CBE Capital, a subsidiary of the state-run Commercial Bank of Ethiopia, and Wegagen Capital Investment Bank, recently listed on the country’s stock exchange.
Authorities described the move as a key milestone in diversifying Ethiopia’s financial sector and strengthening its capital markets. The ECA also granted advisory and brokerage permits to three firms: Ethio-Fidelity Securities, HST Investment Advisory Services, and Equation Securities Investment Advisor.
Since taking office in 2018, Prime Minister Abiy Ahmed has pursued economic reforms to attract private investment. The government has already floated Ethiopia’s local birr currency and opened sectors such as financial services. The reforms have drawn interest from foreign investors, including Kenya’s Safaricom, which secured Ethiopia’s first private telecoms license in 2021.
