Ethiopia Grants First Investment Bank Licenses and Supports Financial Market Development

Ethiopia’s Capital Market Authority has granted its first investment bank licenses to CBE Capital S.C. and Wegagen Capital S.C., with a ceremony held at the Sheraton Addis Hotel. Ethio Fidelties Securities S.C. emerged as the first securities dealer. Governor Mamo Mihretu emphasized the significance of these developments for economic growth. Notably, two of the five licensed firms are led by women CEOs, enhancing gender representation in finance.

Ethiopia’s Capital Market Authority has issued its first investment bank licenses to CBE Capital S.C. and Wegagen Capital S.C., both newly established as independent subsidiaries from their parent commercial banks. This significant development was marked by a ceremony at the Sheraton Addis Hotel, where additional capital market service licenses were also announced.

At the same event, Ethio Fidelties Securities S.C. was recognized as Ethiopia’s inaugural securities dealer within the emerging capital market. Mamo Mihretu, the Governor of the National Bank of Ethiopia, praised the licensed firms for their role in enhancing financial inclusivity and stimulating economic development, acknowledging this moment as a pivotal milestone in the nation’s financial sector.

Abebawu Zewude, the Board Chairman of Ethio Fidelties Securities S.C., shared insights on the company’s aspirations, mentioning the firm has secured approximately 40 shareholders and possesses a paid-up capital of 50 million birr. He expressed the hope to support company owners and investors facing challenges when issuing and trading shares in the market.

Hana Teheklu, Director General of ECMA, highlighted the achievement that two of the five licensed firms are managed by women CEOs, showcasing the progress in gender representation within the financial sector. Furthermore, the issuance of licenses to investment securities advisors brings the total count of ECMA-approved licenses to nine, indicating a growing and diversifying financial landscape in Ethiopia.

The issuance of the first investment bank licenses in Ethiopia signifies a transformative moment in the country’s financial sector. The establishment of institutions like CBE Capital S.C. and Wegagen Capital S.C. marks a commitment to financial inclusivity and economic growth. Additionally, the emergence of Ethio Fidelties Securities S.C. as the first securities dealer reflects an expanding capital market that aims to address challenges faced by investors and company owners.

Original Source: shega.co