Ethiopia’s Capital Market Authority has issued its inaugural investment bank licenses to CBE Capital S.C. and Wegagen Capital S.C., marking a significant development in the country’s financial landscape. Ethio Fidelties Securities S.C. has emerged as the first securities dealer. The event underscored the importance of inclusivity and economic advancement, highlighted by the leadership of women CEOs in two of the licensed firms.
Ethiopia has officially issued its first investment bank licenses through the Capital Market Authority, granting approval to CBE Capital S.C. and Wegagen Capital S.C. These entities will function as independent subsidiaries, derived from their respective commercial banks. Additionally, during an event at the Sheraton Addis Hotel, the licenses for three other capital market services were unveiled, marking a significant step in the development of the nation’s capital market.
One notable recipient of a license is Ethio Fidelties Securities S.C., which has emerged as the first securities dealer in Ethiopia’s emerging capital market. Mamo Mihretu, the Governor of the National Bank of Ethiopia, praised the significance of these licenses in enhancing financial inclusion and contributing to economic progress in the country.
Abebawu Zewude, Board Chairman of Ethio Fidelties Securities S.C., expressed pride in the achievement, highlighting that their shareholders comprise local financial sector participants and international traders. He noted the firm’s aim, along with a paid-up capital of 50 million birr, is to support company owners and investors who previously encountered challenges in share issuance and sales.
Hana Teheklu, Director General of ECMA, celebrated the fact that two of the five newly licensed firms are under the leadership of women CEOs, illustrating a forward-looking trend in Ethiopian finance. Furthermore, two additional licenses have been allocated to investment securities advisors, raising the total number of ECMA-approved licenses to nine, which showcases progress in the country’s financial landscape.
The issuance of the first investment bank licenses in Ethiopia signifies a notable advancement in the nation’s financial sector. The establishment of CBE Capital S.C. and Wegagen Capital S.C., along with the licensing of Ethio Fidelties Securities S.C., illustrates a commitment to financial inclusivity and economic empowerment. The recognition of women-led firms further promotes diversity, thus presenting a promising future for the Ethiopian capital market.
Original Source: shega.co
