Ethiopia’s First Investment Bank Licenses Mark Financial Milestone

Ethiopia’s Capital Market Authority has granted its first investment bank licenses to CBE Capital S.C. and Wegagen Capital S.C., alongside three capital market service licenses. Ethio Fidelties Securities S.C. becomes the first securities dealer. This initiative aims to boost financial inclusivity and economic growth, with notable roles for women leaders in the new firms.

Ethiopia’s Capital Market Authority has issued its inaugural investment bank licenses, designating CBE Capital S.C. and Wegagen Capital S.C. as independent subsidiaries of their respective commercial banks. During a ceremony at the Sheraton Addis Hotel, the Authority also announced the issuance of three capital market service licenses.

Ethio Fidelties Securities S.C. has emerged as Ethiopia’s first securities dealer within the new capital market framework. Mamo Mihretu, the Governor of the National Bank of Ethiopia, commended the licensed organizations for their potential to enhance financial inclusivity and stimulate economic development, considering the licenses as a pivotal development in Ethiopia’s financial landscape.

Abebawu Zewude, Board Chairman of Ethio Fidelties Securities S.C., stated, “Our shareholders are individuals involved in the local financial sector and international trade. We have been waiting for this license for a while”. He noted the organization boasts approximately 40 shareholders with a paid-up capital of 50 million birr, aiming to establish itself as a significant market player. Abebawu further emphasized their commitment to assisting investors navigate the complexities of share issuance and sales.

Hana Teheklu, Director General of ECMA, expressed enthusiasm over the fact that two of the five newly licensed firms are spearheaded by female CEOs, highlighting a progressive step in the industry. The issuance of two additional licenses to investment securities advisors raises the total number of ECMA-approved licenses to nine, signifying a robust increase in Ethiopia’s financial services sector.

The issuance of investment bank licenses in Ethiopia marks a significant advancement in the country’s financial evolution. With firms like CBE Capital S.C. and Ethio Fidelties Securities S.C. entering the market, there exists a heightened opportunity for financial inclusivity and growth. Furthermore, the progress in leadership diversity within these firms underlines a broader positive change in the economic landscape.

Original Source: shega.co