Ethiopia’s new securities exchange admitted its second trading member yesterday (4 June 2025). CBE Capital Investment Bank S.C. joined the Ethiopian Securities Exchange (ESX). So far there is one listed company, Wegagen Bank S.C. and trading operations have not started but are expected soon.

CBE Capital investment bank is a public-private partnership between state-owned giant bank Commercial Bank of Ethiopia (70%) and Dalol Capital (30%). It became Ethiopia’s first private investment bank on 22 March 2025, when the Ethiopian Capital Markets Authority (ECMA) approved its investment banking licence along with Wegagen Capital investment bank (see or story on the five licences here).

Recently, Wegagen Capital Investment Bank was admitted as the first trading member (see our story here). More investment banking applications are said to be in the pipeline.

Zemedeneh Negatu, CEO of CBE Capital Investment Bank, said at yesterday’s ceremony: “We are going to make a big difference”.

He wrote on LinkedIn: “As an official member of ESX, the bank is now positioned to significantly enhance its equity and fixed income securities brokerage service offerings, providing both individual and institutional investors with unprecedented access to Ethiopia’s newly developing capital markets.

“The membership affirms our unwavering commitment to provide innovative investment opportunities and financial advisory services that empower our customers. We look forward to leveraging our local knowledge and global expertise to support Ethiopia’s newly emerging capital markets and ensuring investors have access to a robust and dynamic financial ecosystem.

“Since the start of its operations in March, CBE Capital has focused on providing investment banking services to various sectors such as banking, manufacturing, real estate, etc., in preparation for IPOs (initial public offers), private placements, regulatory registrations and M&As (mergers and acquisitions).

“CBE Capital has recruited exceptionally talented, experienced professionals locally and from the Ethiopian diaspora in the U.S. with extensive relevant experience in investment banking and brokerage and other areas. We are currently recruiting more professionals including summer interns.” 100% of the staff are Ethiopians, some with decades of experience in relevant fields in U.S. markets.

Zemedeneh has been a committed supporter of capital markets development in Ethiopia for decades and remains a firm evangelist for Ethiopia’s giant opportunity.

In the first years of the new millennium, he and other colleagues developed plans and a rulebook for an Addis Ababa Stock Exchange. However, the Government would not approve the launch before a legal framework in place.

In the last four years, the Government has been rapidly accelerating the pace of economic transformation and setting up of modern and market-based structures has accelerated rapidly in the last four years.

Disclosure: The writer is providing training to the ESX staff and has worked with Zemedeneh previously.

Photo: Hana Tehelku, Director General of the Ethiopian Capital Markets Authority, Tilahun Esmael Kassahun, CEO of the ESX, and Zemedeneh Negatu, CEO of CBE Capital Investment Bank, at the ceremony to admit CBE Capital as a trading member. Credit: Tom Minney