Ethiopia’s Capital Market Authority has issued its first investment bank licenses, with CBE Capital S.C. and Wegagen Capital S.C. leading the initiative. Ethio Fidelties Securities S.C. also became the first securities dealer in the country. The event was marked by a ceremony and highlighted the need for enhanced financial inclusivity and support for local investors, with notable female leadership representation among the new licenses.
Ethiopia’s Capital Market Authority has officially granted its first investment bank licenses, marking a pivotal development in the nation’s financial landscape. CBE Capital S.C. and Wegagen Capital S.C. are the inaugural firms to operate as independent subsidiaries, having been spun off from their parent commercial banks. This event was commemorated with a ceremony at the Sheraton Addis Hotel, where other capital market service licenses were also distributed.
Among the notable announcements was the licensing of Ethio Fidelties Securities S.C., which has become Ethiopia’s first securities dealer within the emerging capital market. Mamo Mihretu, the Governor of the National Bank of Ethiopia, commended the licensed firms for their contributions towards enhancing financial inclusion and stimulating economic growth, highlighting this achievement as a significant milestone in Ethiopia’s financial history.
Abebawu Zewude, the Board Chairman of Ethio Fidelties Securities S.C., emphasized their long-awaited license, noting that the firm comprises around 40 shareholders from the local financial sector and international trade, with a paid-up capital of 50 million birr. He stated their ambition to become a significant player in the sector and expressed their commitment to helping company owners and investors overcome challenges in issuing and selling shares.
Hana Teheklu, the Director General of ECMA, expressed her satisfaction in seeing two of the five newly licensed firms headed by women CEOs. Additionally, the other licenses were issued to investment securities advisors, bringing the total of ECMA-approved licenses to nine, illustrating the progressive strides in Ethiopia’s capital market.
In summary, the issuance of the first investment bank licenses in Ethiopia is a significant step towards fostering financial inclusion and stimulating economic growth within the country. The establishment of CBE Capital and Wegagen Capital as independent entities, along with the licensing of Ethio Fidelties Securities S.C. and four other firms, marks a crucial advancement in Ethiopia’s evolving financial landscape. The emphasis on female leadership and the commitment to support local investors further underscores the potential for transformation in this sector.
Original Source: shega.co
