Ethiopia’s Capital Market Authority has issued its inaugural investment bank licenses to CBE Capital S.C. and Wegagen Capital S.C., alongside granting capital market service licenses to three other firms, including Ethio Fidelties Securities S.C., the first securities dealer. Governor Mamo Mihretu praised these developments as milestones in financial inclusivity and economic growth, highlighting significant advancements, including female leadership in the sector.
The Capital Market Authority of Ethiopia has officially issued its first investment bank licenses to CBE Capital S.C. and Wegagen Capital S.C. These institutions are distinct subsidiaries formed from their respective commercial banks. Additionally, during a ceremony at the Sheraton Addis Hotel, three other capital market service licenses were awarded, notably designating Ethio Fidelties Securities S.C. as the first securities dealer in Ethiopia’s developing capital market.
Governor Mamo Mihretu of the National Bank of Ethiopia commended the newly licensed companies, suggesting their establishment will significantly contribute to financial inclusion and stimulate economic advancement. He stated that these licenses mark a pivotal moment in the evolution of Ethiopia’s financial landscape.
Abebawu Zewude, Board Chairman of Ethio Fidelties Securities S.C., expressed optimism regarding their future, stating, “Our shareholders are individuals involved in the local financial sector and international trade.” With a paid-up capital of 50 million birr and 40 shareholders, he described the license acquisition as a long-awaited event, aiming to become a leading entity in the financial sector.
Abebawu further articulated their mission to assist business owners and investors who have previously encountered difficulties in share issuance and sales. Moreover, Hana Teheklu, Director General of the Ethiopian Capital Market Authority (ECMA), highlighted that two of the five licensed firms are headed by female CEOs, reflecting progressive leadership in the sector.
Furthermore, the licensing action also included two additional approvals for investment securities advisors, raising the total number of ECMA-endorsed licenses to nine, reinforcing Ethiopia’s advancing financial infrastructure.
In conclusion, the issuance of the first investment bank licenses in Ethiopia signifies a transformative development within the country’s financial sector. The establishment of CBE Capital S.C. and Wegagen Capital S.C., alongside the launch of Ethio Fidelties Securities S.C., showcases a commitment to enhancing financial inclusion and economic growth. The recognition of women in leadership roles within these firms further illustrates a progressive shift in Ethiopia’s capital market.
Original Source: shega.co
