Ethiopia roundup – Awash 4th investment bank, Kenyans taking interest, ECMA social warnings

Awash Capital S.C. is the latest Ethiopian investment bank to be licensed by the Ethiopian Capital Market Authority (ECMA). It received the licence on 19 November, and is the 4th investment bank licensed for Ethiopia’s fast-growing capital market.

This brings the total of licensed Capital Market Service Providers to 13, according to a press release from ECMA (see list below). Awash Capital is authorized to operate in the category Investment Bank (within a banking group, Awash Bank S.C.). Awash Capital is led by Andualem Hailu.

Here is a list of licensed CMSPs from ECMA website with date of licences. Updated to include Awash Capital, one CMSP is still missing.

Investment Advisor (Corporate)

Equation Securities Investment Advisor P.L.C. (21/3/25)
Ethio Capital Solutions P.L.C. (12/3/25)
HST Investment Advisors P.L.C. (21/3/25)
i-Capital Africa Institute P.L.C. (25/11/24)
Ignite Capital PLC (30/9/25)
Zuri Capital SC (30/9/25)

Securities Investment Advisor

ProInvest Capital P.L.C. (31/10/25)

Investment Bank

Awash Capital S.C. (19/11/25)
CBE Capital Investment Bank S.C. (21/3/25)
First Addis Investment Bank PLC (30/9/25)
Wegagen Capital Investment Bank S.C. (21/3/25)

Securities Dealer

Ethio Fidelity Securities S.C. (21/3/25).

Photo- representatives of ECMA and Awash Capital, credit ECMA LinkedIn.

Kenya brokers showing interest

In a post on LinkedIn, Ethio Capital Solutions PLC announced links to Kenya’s Standard Investment Bank (SIB), stating: “We firmly believe that collaboration is essential to accelerating Ethiopia’s capital-market development, and there is no better place to partner than Kenya — a market that shares similar business environments, regulatory challenges and regional aspirations.

“Through this alliance, ECS and SIB join forces to deliver high-quality, globally benchmarked, and locally grounded solutions that strengthen Ethiopia’s emerging capital-market ecosystem. Together, we aim to unlock cross-border investment opportunities, enhance market infrastructure, and support the long-term vision of a vibrant, modern, and competitive Ethiopian financial market.”

SIB was established in 1995 and is still led by founder and Managing Director James Wangunyu, who has been Vice-Chair and then Chair of the Nairobi Securities Exchange. Its track record includes investment banking, securities trading and asset management.

NCBA group had previously announced plans to expand into Ethiopia and in March 2025 it led training on investment banking and custodian operations, see our story .

This article on Semafor Africa covers the prospects for KCB and Equity Bank in entering the Ethiopian market. Experts warn that the experience of Safaricom Ethiopia is relevant for Kenyan banks. Safaricom paid $1bn for a licence and has faced hard competition from state-owned Ethio Telecom, losing $325m in 2024. A World Bank report from July 2025 released in September, which calls for action to end unequal treatment and tackle “possible abuse of dominant market position”. Standard Bank (South Africa) has had a representative office for some years and was the first to relicense this office with the National Bank of Ethiopia in terms of the revised Business Banking Proclamation, according to this report on Stockmarket.et. First Bank of Nigeria is also reportedly interested (see Africa Report and Punch Nigeria).

ECMA warning

Now that securities dealers, investment banks and others are fully licensed and functional, the Ethiopian Capital Market Authority (ECMA) is clamping down on the unlicensed brokers who had flourished for a few years before the regulated regime came into place. The authorities have encouraged these to get licensed as formal CMSPs and some have taken this route.

According to this news report on Stockmarket.et, at the end of November the ECMA warned people and groups promoting or selling securities or investment opportunities through social media without approval and a licence. Capital Market Proclamation No. 1248/2013 and the Capital Market Service Providers Licensing and Supervision Directive No. 980/2016 provide the framework for the licences. ECMA said that engaging in regulated capital market activities without a licence is a serious crime, punishable by up to 15 years in prison (Art. 106 of the Proclamation).

The Authority says it is actively monitoring social media and other platforms to identify anyone conducting illegal capital market activities. It warned legal action against those who continue.

(Photo: Addis Ababa city from Mount Entoto, May 2025, credit Tom Minney, ACMN)