@ECMA_Ethiopia – Ethiopian Business Review

Wegagen Capital Investment Bank S.C., a subsidiary of Wegagen Bank, officially launched operations, becoming the country’s first private investment bank under the newly established capital market framework.

The inaugural ceremony, held at Hilton Addis Ababa, drew a distinguished audience, including Dr. Tilahun Ismael, CEO of the Ethiopian Securities Exchange (ESX), as well as executives from financial institutions, regulators, and invited guests.

Speaking at the event, Dr. Aklilu Wubet, Chairperson of the Board of Wegagen Capital, emphasized that the bank was formed with a paid-up capital of ETB 385 million, contributed by visionary institutions and individuals who recognize the strategic importance of investment banking in driving national economic growth.

Dr. Aklilu noted that Wegagen Capital is the first private investment bank to be granted an operational license by the Ethiopian Capital Market Authority (ECMA), issued on March 21, 2025. The bank was also the first trading member registered with the Ethiopian Securities Exchange (ESX) on May 14, 2025.

“One of the biggest challenges during formation,” Dr. Aklilu added, “was the scarcity of trained professionals in investment banking. To address this, we invested in capacity building, brought in international expertise, and conducted rigorous profitability analysis—all made possible with strong backing from NBE, ECMA, and ESX.”

Brutawit Dawit Abdi, CEO of Wegagen Capital, highlighted the bank’s mission to set a new benchmark in the financial industry. “As Ethiopia’s pioneering private investment bank, Wegagen Capital carries the responsibility to lead with integrity, innovation, and impact,” she said. “Our formation stems from the pressing need to support capital market growth and fuel national development.”

She outlined the bank’s offerings, which include a full suite of investment banking services tailored to government institutions, public enterprises, corporations, and high-net-worth individuals. Services range from strategic advisory on mergers and acquisitions to capital raising through securities, IPO underwriting, trading and brokerage services, and intermediation between issuers and investors.

Dr. Tilahun Ismael reaffirmed the importance of institutions like Wegagen Capital in building Ethiopia’s capital market ecosystem. “Capital formation is everyone’s responsibility,” he stressed. “We must demystify the concept of capital markets for ordinary Ethiopians, foster a culture of saving, and build the trust necessary to attract foreign investment.”

Wegagen Capital operates independently from Wegagen Bank with its own corporate governance, management, and operational structure. This separation allows the firm to serve as a neutral investment partner for banks and institutions seeking capital market solutions.

The Ethiopian Capital Market Authority (ECMA) has announced a one-month extension for publicly held companies to submit required regulatory documents, offering a final opportunity for compliance with the newly enacted Public Offer and Trading of Securities Directive No. 1030/2024.

The extension, granted in response to industry requests, pushes the deadline to April 9, 2025. This move underscores the Authority’s commitment to fostering transparency and investor protection as Ethiopia’s capital market takes shape.

Companies with over 50 shareholders—whether publicly listed or in the process of raising capital—are urged to submit key details about their securities. This includes the total number of shares issued, their valuation, historical offering details, and relevant promotional materials.

ECMA emphasized that failure to comply by the new deadline will have regulatory consequences, with any share issuance by non-compliant companies being considered as occurring after the directive’s effective date of November 14, 2024.

Hard copies of the required documents must be delivered to ECMA’s head office at Minaye Building, Addis Ababa, while digital copies should be sent via email.

The Authority reiterated that this submission does not equate to formal registration of existing securities. Companies will still need to complete the full registration process within a year from the directive’s enactment.

The Ethiopian Capital Market Authority (ECMA) has issued a stern warning to the public about the existence of an unauthorized entity operating under the name Takilo “Investment Bank.” The entity falsely claims to be Ethiopia’s first investment bank providing capital market services, yet it is doing so without the required license, violating both national regulations and investor protection laws.

ECMA has made it clear that Takilo “Investment Bank” has not been granted the necessary license to operate as an investment bank or to offer any capital market services in Ethiopia, as mandated by the Capital Market Service Providers Licensing and Supervision Directive No. 980/2024. The entity is, therefore, operating illegally and is not authorized to engage in any capital market activities.

In accordance with the Capital Market Proclamation No. 1248/2021 and the licensing directive, only entities that are fully registered and regulated by ECMA are allowed to provide capital market services within the country. As a result, ECMA is urging all individuals and businesses to avoid engaging with Takilo “Investment Bank” or any similar entity that lacks proper authorization.

Engaging with these unauthorized providers poses a significant risk to investors, as they are not subject to regulatory oversight that ensures market integrity and protects investor interests. ECMA strongly advises the public to verify the licensing status of any capital market service provider before entering into any agreements or investments.

The authority also calls on the public to remain vigilant, exercise caution, and conduct thorough due diligence to protect themselves from fraudulent activities.

Ethiopia Welcomes Its First Private Investment Bank as Wegagen Capital Launches

ECMA Extends Deadline for Public Companies’ Compliance Submissions

ECMA Warns Public Against Fraudulent “Takilo Investment Bank” Operating Without License