The Ethiopian Capital Market Authority (ECMA) has granted licenses to five companies, allowing them to operate as capital market service providers (CMSPs).
CBE Capital SC and Wegagen Capital Investment Bank SC have secured investment banking licenses. Meanwhile, HST Investment Advisory Services PLC and Equation Securities Investment Advisor PLC have been licensed as investment advisors. Additionally, Ethio-Fidelity Securities SC has become the first company to receive a securities dealer license.
The license approval is considered as a key step toward the operationalization of Ethiopia’s first capital market, the Ethiopian Securities Exchange (ESX).
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With these latest additions, the total number of licensed capital market service providers in the country now stands at nine.
The licensing of CBE Capital and Wegagen Capital Investment Bank is particularly noteworthy, as both entities are largely owned by two prominent commercial banks—CBE Capital by the state-owned Commercial Bank of Ethiopia (CBE) and Wegagen Capital Investment Bank by Wegagen Bank SC.
