Prime Capital Becomes Ethiopia’s Second Independent Investment Bank as ECMA Licenses Sixth Player in Category

EBR_News Apr 21, 2026

Betegbar Yaregal

Prime Capital S.C. has officially received an investment banking license from the Ethiopian Capital Market Authority (ECMA), becoming the second independent investment bank in the country and the sixth institution licensed in the investment banking category.

The licensing ceremony, held at ECMA headquarters in Addis Ababa, brings the total number of licensed Capital Market Service Providers (CMSPs) in Ethiopia to 17, expanding the ecosystem across three operational categories.

With Prime Capital’s entry, the investment banking category now includes six institutions: Siinqee Investment Bank, CBE Capital, First Addis Investment Bank, Wegagen Capital, Awash Capital, and Prime Capital. Prime Capital joins First Addis Investment Bank as the only two independent investment banks not operating as subsidiaries of commercial banks.

The other licensed categories remain at nine Investment Advisors (Corporate), and two Securities Dealers (Gadaa Securities and Ethio Fidelity).

Prime Capital CEO Habib Mohammed told Ethiopian Business Review that the firm’s journey began in 2023 when he and fellow professionals traveled to Istanbul, Turkey, to study established capital markets. “We did this because we believed gaining exposure to their experience and systems would be beneficial for us,” he said.

The firm was established in 2023/24 but spent its early years conducting market research and fulfilling prerequisites, as no regulatory body existed at the time. Prime Capital launches with nine shareholders and initial paid-up capital of 32 million birr, with management drawn from experienced banking, telecom, and consulting backgrounds.

While Prime Capital’s immediate focus is full-fledged investment banking services, including corporate finance, capital raising, trading and brokerage, mergers and acquisitions advisory, business valuation, and Sharia-compliant financial solutions, the CEO indicated interest in expanding into other license categories.

“Initially, our primary goal was to operate as a Collective Investment Scheme (CIS), and we had interests in other areas as well. However, attempting to enter the market as a Collective Investment Scheme right away presents significant challenges,” Habib explained. He added that specialized licenses, such as Securities Shariah Advisor, may be added in the future.

Speaking at the ceremony, ECMA Director General Hana Tehelku emphasized the critical role of investment banks in capital market development and investor protection. She urged licensed service providers to uphold corporate governance standards, market integrity, and compliance with regulatory frameworks.

“It is essential to reinforce internal capacity by strengthening our human resources. In the capital market, the role of human capital is irreplaceable. This sector demands a highly skilled workforce, particularly specialists with deep expertise in economics, finance, law, and other related disciplines,” Hana stated.

Prime Capital will operate with four licensed Appointed Representatives, duly authorized by ECMA, ensuring full regulatory compliance from day one.