Ethiopia’s Capital Market Authority has issued its first investment bank licenses to CBE Capital S.C. and Wegagen Capital S.C., marking an important milestone in the country’s financial sector. Ethio Fidelties Securities S.C. becomes the first securities dealer, with a focus on enhancing financial inclusivity and economic growth. The issuance reflects progress toward a more robust capital market in Ethiopia.
Ethiopia has officially issued its first investment bank licenses through its Capital Market Authority. CBE Capital S.C. and Wegagen Capital S.C. have emerged as independent subsidiaries, distinct from their parent commercial banks. Additionally, three other capital market service licenses were awarded, highlighting the country’s evolving financial landscape.
During a ceremony at the Sheraton Addis Hotel, Ethio Fidelties Securities S.C. was recognized as Ethiopia’s inaugural securities dealer in this developing market. Mamo Mihretu, the Governor of the National Bank of Ethiopia, praised the firms for enhancing financial inclusivity and economic growth, marking this issuance as a pivotal moment in Ethiopia’s financial sector history.
Abebawu Zewude, Board Chairman of Ethio Fidelties Securities S.C., stated, “Our shareholders are individuals involved in the local financial sector and international trade”. He noted their anticipation for the license, mentioning their 50 million birr paid-up capital and aspirations to lead the sector.
The goal, according to Abebawu, is to assist company owners and investors traditionally hindered by uncertainties in share issuance and sales. Hana Teheklu, Director General of ECMA, celebrated the fact that two of the five newly licensed firms have women CEOs. The issuance of licenses to two investment securities advisors has now increased the total number of ECMA-approved licenses to nine.
Ethiopia’s issuance of its first investment bank licenses, along with the establishment of new securities firms, represents a crucial step in the development of its capital markets. The involvement of women in leadership positions within the newly licensed firms underscores a commitment to inclusivity. As financial services evolve, these developments aim to facilitate better access to investment opportunities for all stakeholders.
Original Source: shega.co
