How to Get Licensed by the Ethiopian Capital Market Authority: A Step-by-Step Guide for Service Providers

Ethiopia’s capital market will unlock a new chapter for the country’s financial sector. If you’re a business or individual hoping to offer services on the capital market, whether brokerage, advisory, or investment management. The first thing you need to do is get licensed by the Ethiopian Capital Market Authority (ECMA). But before that, there’s a critical step: the self-evaluation questionnaire by the Ethiopian Capital Market Authority. This Article by Banks Ethiopia will give you the blueprint on what to do to get licensed. 

What Is the Ethiopian Capital Market Authority Self-Evaluation Test?

This self-evaluation is a readiness checklist. Before officially applying for a Capital Market Services License, you must complete ECMA’s Self-Evaluation. This helps you assess whether you meet the legal, financial, operational, and governance standards required for the license you’re pursuing.

Main Elements of the Self-Evaluation.

1. Legal Standing

You must obtain :

• A Commercial Registration from the Ministry of Trade and Industry. 
• Or an investment Permit from the Ethiopian Investment Commission (EIC).
• Registered business address in Ethiopia
  

2. Financial Capacity and License Type 

Your financial health must align with the license you’re applying for. Your incorporation type and the Services License that you want to apply for are directly related. You will be informed while filling out the form of the needed net worth. You will also be provided with an asset mix ratio calculator on the form. 

3. Governance Structure 

• A competent Board of Directors qualified in the stated competency framework of the Capital Market Service Providers Licensing and Supervision Directive by the Ethiopian Capital Market Authority (ECMA).

• Good governance is a must.
  

4. Operational Readiness

• A functional Infrastructure (IT systems, phones, software) in the office
  
• Internal manuals on operations, trading, ethics, Anti-Money Laundering and Countering the Financing of Terrorism
  
• Data and document retention systems (Record keeping)
  
• Membership in an SRO or industry association
  

5. Technology & Risk Management

You must demonstrate strong systems to handle:

• Cybersecurity
  
• Data privacy
  
• Disaster recovery
  
• Legal compliance
  

6. Human Capital

You need to show that your team is:

• Qualified
  
• Properly staffed
  
• Includes key personnel (e.g., Compliance Officer, Appointed Representatives)
  

Final Thought

Completing the self-assessment is just the first step. It’s meant to help you gauge where you stand, not to guarantee approval. ECMA will still perform a thorough review when you apply.

So take this opportunity seriously. Use the self-evaluation to identify gaps, improve your systems, and show that you’re not just applying for a license, but are ready to responsibly support Ethiopia’s growing capital market.

Getting licensed by ECMA isn’t just about compliance—it’s about building trust, transparency, and long-term credibility in Ethiopia’s financial future. Do the work, meet the standards, and you’ll be part of a transformative journey.
For any issues or guidance, ECMA is open to helping:

• To take the assessment for Self-Evaluation for Prospective Capital Market Service Providers – https://ecma.gov.et/registration/
• Email: [email protected]
• Phone: 011-5-57-83-11