The Ethiopian Capital Market Authority (ECMA) reported that an international institution has formally submitted an application for an investment license, marking the first such filing by a foreign entity as Ethiopia develops its capital market framework.

ECMA Director General Hana Tehelku said the applicant has completed preliminary requirements and submitted initial documentation, though the institution has not been publicly identified. She noted that several foreign firms have expressed interest, but this is the first to proceed to a formal application stage.

Ethiopia’s financial sector has long been relatively closed, with banking and financial services dominated by state-owned institutions and domestic private banks. In recent years, the government’s Homegrown Economic Reform agenda has promoted reforms aimed at broadening private participation and building market-based financing tools. The creation of ECMA and the ongoing work to operationalize the Ethiopian Securities Exchange (ESX) are part of those reforms.

Regulators expect foreign entrants to contribute capital, technical expertise, technology systems, and compliance practices that can support the credibility and development of a new market. ECMA has emphasized that its licensing process is intended to screen for capacity, transparency, and regulatory compliance and requires extensive supporting documentation.

To date, 16 institutions have been licensed across investment banking, advisory, and brokerage services, many linked to domestic banks. ECMA also reported rising interest across additional licensing categories, including fund management, with expectations that demand may increase further following the issuance of a Collective Investment Schemes Directive.

Separately, ECMA recently granted a corporate investment advisory license to BDO Consulting PLC, bringing the number of licensed advisory firms to nine.

Source: Capital Ethiopa Newspaper