@EthiopiaFinance – 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.

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Ethiopia has secured over 5.1 billion USD in remittances within the first nine months of the 2024/2025 fiscal year, surpassing the total 4.4 billion USD received in the entire previous fiscal year, according to Ambassador Fetsum Arega, Director General of the Ethiopian Diaspora Service.

This remarkable inflow underscores growing trust and engagement from the global Ethiopian diaspora, not only in supporting families but also in exploring emerging investment avenues.

Ambassador Fetsum noted that diaspora interest is expanding beyond traditional remittance channels. Many are now leveraging liberalized investment policies and previously restricted sectors, entering joint ventures with foreign investors and injecting capital directly into the Ethiopian market.

Two major companies have already been established through this model—one facilitated by the UK-based diaspora and another by diaspora members in France. These developments reflect a broader trend of diaspora-fueled partnerships that blend emotional connection with economic ambition.

Source: Ethiopia News Agency

Oromia Bank, in collaboration with the Ministry of Transport and Logistics, has implemented a technology that allows easy payment of fuel bills through the Milki digital financing application.

Following the implementation of the new Milki digital financing application by Oromia Bank, a grand launch event was held in the presence of senior officials of the Ministry of Transport and Logistics and relevant stakeholders.

In his message at the launch event, the CEO, Teferi Mekonnen, said Our bank is implementing a wide range of activities to support the digital payment strategic plan of our country Ethiopia, especially those that reduce cash circulation and promote digital payment services and transactions; Obo Teferi, who said that large-scale works supported by technology are being carried out, said that the work of digitizing fuel transactions through the Milki app that we are announcing today is a significant example.

The Director of the Fuel Subsidy Project Office of the Ministry of Transport and Logistics, Selman Mohammed, said; The steps taken by Oromia Bank to modernize the fuel transaction system by understanding the comprehensive digitalization plan of the government is commendable. He further called on the bank to continue its digitalization work in other sectors.

Among the partners of Oromia Bank who attended the program; Dr. Yusuf Elmali, General Manager of Oil Libya Ethiopia, said that the application developed by Oromia Bank is convenient for fuel transactions, and that the technology will modernize fuel transactions.

In a message sent by the Chairman of the Board of Directors of Oromia Bank, Dr. Assefa Sime, he said that Oromia Bank is working on a multi-faceted digitalization project, which is bearing fruit. He urged that this comprehensive digitalization work continue to be strengthened.

According to the Bank, Oromia Bank is the first bank to implement a system that allows customers to obtain loans even if they do not have money in their account, including making fuel payments, by launching the Milky Digital Financing application on the application developed by the Ministry of Transport and Logistics to modernize fuel transactions.

Ethiopia is set to host the fourth edition of the Africa Startup Ecosystem Builders Summit & Awards (ASEB 2025). The event, organized by the Africa Startup Ecosystem Builders Society, will bring together entrepreneurs, investors and policymakers from across the continent to Addis Ababa from October 1-3.

Originally planned for Cote d’Ivoire, the summit was relocated due to scheduling conflicts with that country’s national elections. The theme for this year’s gathering is “Empowering Africa’s Startup Ecosystem Builders: Tools, Funding, and Global Visibility for Sustainable Growth,” focusing on strengthening support systems for emerging businesses.

McKevin Ayaba, founder of the ASEB Society, explained that the change in venue presents an exciting chance to highlight Ethiopia’s entrepreneurial potential. “Every good story has moments where the unexpected creates new opportunities,” Ayaba said. “Ethiopia represents an exciting frontier with tremendous entrepreneurial potential.”

Local firm Sahan Advisory Services will serve as the host partner for the event. The company’s co-founder Dr. Jibril Mohamed Ahmed was previously honored as ASEB’s Startup Mentor of the Year in 2022. Sahan CEO Dr. Kassahun Delene Deyassa emphasized the summit’s importance for Ethiopia’s innovation landscape, noting it will help amplify the voices of those building the country’s entrepreneurial ecosystem.

The three-day program will include an awards ceremony recognizing Africa’s top startup supporters, practical workshops on business development topics, and tours of Ethiopia’s innovation hubs. These activities aim to connect Ethiopian entrepreneurs with continental networks and potential investors.

This event comes at a pivotal time for Ethiopia’s technology and startup sectors, which have seen rapid growth in recent years. The summit provides a platform to attract international attention and investment to local innovation efforts while strengthening Ethiopia’s connections to pan-African business networks.

Organizers expect the gathering to highlight Ethiopia’s emerging role as a hub for entrepreneurship in Africa. As Ayaba noted, the event will contribute to “the broader narrative of an Africa whose economic future is shaped by those who enable entrepreneurship.” The selection of Addis Ababa as host city reflects growing recognition of Ethiopia’s potential in the continental startup landscape.

Ethiopia and the European Union (EU) today signed a major €240 Million (USD266.7 million) grant agreement under the 2024 Annual Action Programme (AAP-2024), reinforcing their five-decade-long strategic partnership. The agreement, inked at the Ministry of Finance, targets critical development areas, including agribusiness expansion, digital skills training, post-conflict recovery, and governance reforms.

The funding will support agribusiness initiatives to enhance productivity and create jobs for smallholder farmers, while also strengthening digital skills within Technical and Vocational Education and Training (TVET) institutions to drive economic growth. Additionally, the program will bolster democratic institutions, restore basic health services in conflict-affected regions, and provide psychosocial support for survivors of gender-based violence. Another key focus is improving economic opportunities for displaced populations through integrated solutions and boosting private sector engagement in vital value chains.

Finance Minister Ahmed Shide hailed the EU’s support as pivotal in addressing Ethiopia’s pressing challenges. “This financing package is crucial for stimulating private sector investment, modernizing our tax and customs systems, and enhancing services in agribusiness, health, and education,” he said. “It reinforces our longstanding partnership and contributes significantly to our ongoing reforms.”

The minister also stressed the importance of regional integration under the EU’s Global Gateway Initiative, highlighting the Horn of Africa’s untapped potential for economic cooperation. “As we navigate evolving economic landscapes, our focus on regional cooperation is more critical than ever,” he noted, referencing collaborative frameworks like the Horn of Africa Initiative (HOAI).

EU Ambassador to Ethiopia, Sofie From-Emmesberger, underscored the agreement’s broader significance, stating, “The AAP 2024 reflects our collective commitment to advancing sustainable development in Ethiopia. This is not just a financial agreement; it is a manifestation of our shared values and goals for a prosperous future.”

Ethiopia Welcomes Its First Private Investment Bank as Wegagen Capital Launches

Ethiopia Attracts Over USD5 Billion in Remittances in First Nine Months of Fiscal Year

Oromia Bank and Ministry Partner to Digitise Fuel Payments

Ethiopia Set to Lead Africa’s Startup Dialogue as Host of ASEB 2025

Ethiopia Secures USD266.7M EU Funding for Agribusiness & Digital Skills