Ethiopia Expands Capital Market, Licensing 11th Service Provider

ADDIS ABABA, Ethiopia – Ethiopia's capital market regulator has licensed three new service providers, including the country's first privately-held investment bank, expanding the number of market participants to eleven as it builds out the ecosystem for the new stock exchange. The Ethiopian Capital Market Authority (ECMA) is accelerating the licensing process to create a competitive field of banks and advisory firms needed to bring deals to the market.

The ECMA granted an investment banking license to First Addis Investment Bank PLC, and securities investment advisor licenses to Ignite Capital PLC and Zuri Capital S.C., according to media reports. Until now, the handful of licensed investment banks were subsidiaries of large state-owned or shareholding commercial banks. The growing roster of licensed firms is a critical catalyst for the Ethiopian Securities Exchange (ESX), which began trading government bonds and a few bank shares in July.