Ethiopia’s Licensed Investment Banks Reach Nine as ECMA Approves D&T Upgrade

The number of licensed investment banks in Ethiopia has reached nine after the Ethiopian Capital Market Authority (ECMA) granted an Investment Bank license to D and T Ethiopia Management Consulting PLC.

The authority announced the approval following its assessment of the company’s license application.

D&T Ethiopia previously operated as a Securities Investment Advisor. The new license allows the company to provide non-brokerage investment banking services, including facilitating mergers and corporate reorganizations.

The move adds another licensed institution to Ethiopia’s developing capital-market ecosystem as the country expands financial services beyond traditional commercial banking.

From investment advisory to investment banking

D&T Ethiopia’s transition represents an expansion of the services it can provide within the capital market.

As a Securities Investment Advisor, the company operated within a narrower regulatory category. Its new Investment Bank license gives it authority to undertake a broader range of non-brokerage investment banking activities.

These can include advising companies on transactions such as mergers and corporate reorganizations, areas that become increasingly important as Ethiopia’s securities market develops and companies seek new ways to raise capital and restructure ownership.

ECMA said the transition demonstrates the growth capacity of the market and the level of trust developing within Ethiopia’s emerging capital-market industry.

Nine investment banks now licensed

With the approval, the total number of investment banks licensed by ECMA has increased to nine.

The growing number comes as Ethiopia develops the institutional infrastructure required for an organized capital market.

The Ethiopian Securities Exchange has already begun facilitating trading in listed securities, while ECMA continues to expand the regulatory framework governing market participants and investment activities.

Investment banks can play an important role in this ecosystem by helping companies structure transactions, prepare for capital-market activities and connect businesses with investors.

The expansion of licensed investment-banking capacity could therefore support the development of more sophisticated corporate-finance services as Ethiopia’s capital market grows.

D&T not licensed for securities trading

ECMA has also clarified the scope of D&T Ethiopia’s new license.

Despite receiving an Investment Bank license, the company is not authorized to operate as a Securities Broker or Securities Dealer.

This means the new license should not be interpreted as permission for D&T Ethiopia to execute securities trades on behalf of clients or deal in securities as a licensed dealer.

The distinction is important as Ethiopia’s capital-market industry adds different categories of licensed intermediaries.

ECMA said the licensing decision followed a rigorous assessment of D&T Ethiopia’s application and congratulated the company on the transition.

The authority also reaffirmed its commitment to developing an inclusive, resilient and strong capital market in Ethiopia.