CBE Capital S.C. receives investment banking license
ADDIS ABABA – The recent granting of licenses to capital market providers is poised to revolutionize Ethiopia’s financial services ecosystem, according to Zemedeneh Negatu, Chief Executive Officer of CBE Capital.
Speaking to the Ethiopian Press Agency (EPA), Zemedeneh described CBE Capital S.C.’s license acquisition as a historic milestone, marking a new era for capital market development in Ethiopia and East Africa.
He highlighted that the licenses will enable stock brokerage and pioneering investment banking services, including advisory on mergers and acquisitions, and capital rising for companies seeking stock exchange listings.
“The inclusion of investment banks and securities dealing companies will facilitate the buying and selling of stocks, treasury bills, and bonds,” he added.
The capital market presents transformative opportunities for both domestic and foreign investors, offering streamlined and transparent investment processes. Zemedeneh noted that simplifying these processes will boost investor confidence, both locally and internationally, and facilitate rapid capital mobilization.
He emphasized that CBE Capital is a dynamic public-private partnership investment bank, a first of its kind in Ethiopia’s financial services sector.
The Board of CBE Capital Chairperson and the Commercial Bank of Ethiopia President Abie Sano stated that this achievement signifies a major advancement in Ethiopia’s financial market transformation, positioning CBE Capital to contribute significantly to the nation’s economic growth.
“CBE Capital is committed to providing exceptional services with the highest integrity and adherence to global best practices,” Abie said. He further stated that the institution aims to meet the diverse needs of domestic and international clients through its investment banking and brokerage divisions.
At the licensing event, the Ethiopian Capital Market Authority (ECMA) Director General Hana Tehelku stressed that the new licenses carry a significant responsibility for the future of Ethiopia’s capital market. She emphasized the critical role of the new service providers in operating with integrity, as their actions will shape the market’s success and sustainability.
It was also noted that the establishment of CBE Capital is timely, as Ethiopia continues to implement its Homegrown Economic Reform Agenda, which identifies robust capital market development as a key pillar for sustainable economic growth and financial inclusion.
The licensing of CBE Capital S.C. and Wegagen Capital Investment Bank S.C., both significantly owned by major commercial banks, Commercial Bank of Ethiopia (CBE) and Wegagen Bank, respectively, is particularly significant.
The Ethiopian Capital Market Authority issued licenses to CBE Capital S.C., Wegagen Capital Investment Bank S.C., Ethio-Fidelity Securities S.C., HST Investment Advisory Services PLC, and Equation Securities Investment Advisor PLC.
BY ASHENAFI ANIMUT
THE ETHIOPIAN HERALD SATURDAY 22 MARCH 2025
