Authority Expands Licensed Players in Capital Market to Eleven
BaseLine Team
01 Oct, 2025
Ethiopia’s fledgling capital market has gained three new entrants after the Ethiopian Capital Market Authority (ECMA) issued licenses this week, raising the number of licensed service providers to eleven.
The regulator granted approvals to First Addis Investment Bank PLC as an investment bank, and Ignite Capital PLC and Zuri Capital S.C. as securities investment advisors, following what officials described as a rigorous review process.
The move marks another incremental step in building a functioning market infrastructure after Ethiopia inaugurated its first capital market service providers earlier this year.
“Licensed service providers will play a critical role in shaping an inclusive, transparent, and resilient financial system,” said Hana Tehelku, ECMA’s Director General, congratulating the new entrants. She urged the firms to contribute actively to advancing Ethiopia’s capital market agenda.
With the addition of these three, the Authority has nearly doubled the diversity of participants in less than a year. Yet market watchers caution that licensing, while a necessary condition, is only part of the equation. A secondary market remains absent, investor awareness is shallow, and critical infrastructure—from clearing houses to legal dispute mechanisms—remains in its infancy.
The Authority, established under the 2021 Capital Market Proclamation, reports directly to the Prime Minister’s Office and is tasked with building regulatory frameworks capable of inspiring investor confidence and mobilizing capital for economic growth.
Whether the momentum from licensing will translate into meaningful market activity remains to be seen. For now, the ECMA continues to emphasize inclusivity and resilience as its guiding principles—lofty goals in a financial ecosystem where both retail investors and corporate issuers are still learning the rules of the game.
