ECMA licenses first foreign investment bank in Ethiopia
via The Reporter Ethiopia6 min read
The Ethiopian Capital Market Authority ECMA has granted an investment banking license to United Capital Financial Services PLC, a subsidiary of Nigeria-based United Capital Group. This marks the first time a foreign investment bank has established a subsidiary in Ethiopia, signaling increased foreign interest in the country's developing capital market. The license was issued on June 5 and announced on June 9, authorizing the company to provide services under Ethiopia’s investment banking framework. ECMA also approved five board directors and licensed four appointed representatives for the company. This development brings the total number of licensed Capital Market Service Providers in Ethiopia to 18 and raises the number of licensed investment banks to seven. ECMA Director-General Hana Tehelku described United Capital's entry as a significant milestone, reflecting growing confidence in Ethiopia’s financial sector reforms and regulatory framework. She added that it demonstrates recognition of Ethiopia’s market potential and could help deepen market capacity, improve regional integration, and strengthen investor participation. This licensing aligns with Ethiopia's ongoing efforts to operationalize its capital market and attract private investment.
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This summary was AI-generated from a story originally published by The Reporter Ethiopia.
The National Bank of Ethiopia NBE has postponed its latest foreign-exchange auction, citing unforeseen technical issues. The NBE had previously announced on May 27 that it would conduct two foreign-exchange auctions of USD 100 million each during the fourth quarter of the fiscal year. This amount represents a significant reduction from the previous auction, which offered USD 500 million. The next auction, valued at USD 100 million, was scheduled for June 24, 2026. Demand for foreign currency remains high, with commercial banks submitting bids totaling approximately USD 1 billion in the previous auction, double the amount offered by the central bank, as the Birr continues to weaken against the US Dollar. In that auction, the weighted average exchange rate for successful bids was 159.98 Birr per dollar, with the highest successful bid at 160.90 Birr per dollar and the lowest at 157.30 Birr. Fourteen of the 30 participating commercial banks secured foreign-currency allocations.
Must ReadThe National Bank of Ethiopia NBE has amended its Franco Valuta Directive, permitting diplomatic missions, foreign investors, and international organizations to import fuel for their own use without relying on the Ethiopian Petroleum Supply Enterprise EPSE. This change allows these entities to use their own foreign exchange for fuel imports, bypassing the need for letters of credit from banks. The volume and value of fuel imported under this scheme will be determined by the approval of the recommending government office. This marks a significant shift, as it is the first time in recent memory that non-governmental entities can independently import and utilize fuel. While the state-owned EPSE will continue to manage fuel imports and supply for most of the market, this new directive aims to facilitate the import of essential commodities without straining national foreign exchange reserves. The directive also extends to other goods and capital items imported by international organizations, NGOs, charities, manufacturers, and exporters.
The Ministry of Foreign Affairs has completed a five-day diplomatic training program for South Sudanese diplomats in Addis Ababa, held from June 5 to 9. Organized by the Ministry and the Institute of Foreign Affairs, the initiative aimed to strengthen professional capacity and deepen ties between Ethiopia and South Sudan. The curriculum included Pan-Africanism, diplomatic negotiation, hydro-politics, transboundary resource management, peacekeeping, conflict resolution, and peacemaking. Hadera Abera, a state minister for Foreign Affairs, stated the program promoted professional exchanges and mutual understanding. Butros Thok Deng, deputy head of mission at South Sudan’s embassy in Ethiopia, noted the program equipped diplomats with skills for regional challenges and opportunities. A participant, Achwil Biong Arop Kuol, highlighted practical insights into peacebuilding, negotiation, development cooperation, and migration. Both countries reaffirmed their commitment to closer cooperation and promoting peace and stability in the Horn of Africa.