Prime Capital Secures Investment Banking License in Ethiopia’s Growing Capital Market
The Ethiopian Capital Market Authority has officially granted a Capital Market Service Provider (CMSP) license to Prime Capital S.C., authorizing the firm to operate as an investment bank under the non-banking group category. The license was issued on April 21, 2026, marking another step forward in the gradual rollout of Ethiopia’s capital market ecosystem.
With this approval, the total number of licensed CMSPs in Ethiopia rises to 17, while the number of institutions operating in the investment banking category reaches six. Prime Capital also becomes the second independent investment bank in the country, alongside First Addis Investment Bank, distinguishing itself from other players that operate as subsidiaries of commercial banks.
The broader investment banking landscape now includes key institutions such as Siinqee Investment Bank, CBE Capital, Wegagen Capital, and Awash Capital. In parallel, the capital market structure continues to expand across other licensed categories, including nine corporate investment advisors and two securities dealers.
As part of the licensing process, ECMA also approved four Appointed Representatives and nine board directors for Prime Capital, signaling an emphasis on governance, operational readiness, and regulatory compliance from the outset.
Founded in 2023/24, Prime Capital enters the market with a paid-up capital of 32 million birr and a shareholder base of nine investors. The company’s leadership team brings experience from banking, telecommunications, and consulting sectors. According to CEO Habib Mohammed, the firm’s early preparation included international exposure, with a study visit to Turkey aimed at understanding more mature capital market systems and operational frameworks.
Prime Capital plans to offer a comprehensive range of investment banking services, including corporate finance advisory, capital raising, mergers and acquisitions (M&A) advisory, business valuation, trading and brokerage services, as well as Sharia-compliant financial solutions. The firm has also indicated potential interest in expanding into additional capital market service categories as the regulatory environment matures.
Speaking during the licensing ceremony in Addis Ababa, ECMA Director General Hana Tehelku underscored the strategic importance of investment banks in supporting capital formation, facilitating efficient market transactions, and strengthening investor confidence. She highlighted that well-functioning investment banks play a central role in bridging issuers and investors while enabling informed decision-making.
She further called on all licensed capital market service providers to uphold strong corporate governance standards, maintain market integrity, prioritize investor protection, and ensure full compliance with Ethiopia’s emerging capital market regulatory framework.
The entry of Prime Capital reflects increasing momentum in the development of Ethiopia’s capital markets, as regulators and private sector participants work in parallel to build a more structured, transparent, and accessible financial ecosystem capable of supporting long-term economic growth.