The Ethiopian Capital Market Authority (ECMA) has granted an investment banking license to United Capital Financial Services PLC, making it the first foreign-owned investment bank authorized to operate in Ethiopia’s emerging capital market. The license was issued on June 5 following regulatory review and approval processes involving multiple government institutions.

The approval marks a significant milestone in Ethiopia’s ongoing financial sector liberalization and capital market reforms. United Capital, a leading pan-African financial services group with operations across several African markets, is expected to provide investment banking, capital raising, advisory, and structured finance services to businesses and investors in Ethiopia.

ECMA Director General Hana Tehelku said the licensing reflects the regulator’s commitment to building a competitive and inclusive capital market ecosystem while attracting reputable international institutions that can contribute expertise, innovation, and investment to the sector.

The development comes as Ethiopia accelerates efforts to deepen its capital markets following the launch of the Ethiopian Securities Exchange and the licensing of several domestic investment banks over the past year. The entry of foreign investment banks is expected to increase market sophistication, improve access to capital, and strengthen investor confidence.

The move is seen as another important step in Ethiopia’s broader economic reform agenda, which aims to attract foreign investment, expand financing options for businesses, and integrate the country more closely into regional and global financial markets.