The Collective Investment Schemes Operation Directive No. 1150/2026 has been registered and approved by the FDRE Ministry of Justice as of September 23, 2026, the Ethiopian Capital Market Authority (ECMA) announced.

Issued under Capital Market Proclamation No. 1248/2021, the Directive establishes a comprehensive legal framework for the establishment, registration, operation and administration of Collective Investment Schemes in Ethiopia.

It also sets out additional responsibilities for Scheme Operators, Custodians and other professional parties involved in the operation of Collective Investment Schemes.

ECMA Director General Hana Tehelku described the Directive as an important step toward directing the savings of Ethiopians into productive investment through professional management and stronger investor protection.

She said the framework is expected to broaden access to the capital market and enable a wider section of the public to participate in the country’s economic growth.

The Directive recognises six categories of Collective Investment Schemes: Money Market Funds, Mutual Funds, Real Estate Investment Funds, Exchange Traded Funds, Alternative Investment Funds and Special Designation Funds.

Under the Directive, no Collective Investment Scheme may be offered to the public without registration by the Authority.

The framework also requires scheme assets to be held by an independent Custodian separate from the Operator and requires Schemes to provide ongoing disclosures.

Scheme Operators and Custodians are licensed under the Capital Market Service Providers Licensing and Supervision Directive No. 980/2024. ECMA will also supervise registered Schemes and their Service Providers.

The Authority said it is ready to work with Scheme Operators, Custodians, Investors and other stakeholders to build a sound and trusted Collective Investment Scheme market in Ethiopia.

Source: ECMA