Nigeria’s United Capital Becomes First Foreign Firm to Secure Ethiopian Investment Banking Licence

Ethiopia has licensed its first foreign investment bank, marking a significant milestone in the development of the country’s capital market and signaling growing international confidence in ongoing financial sector reforms.

The Ethiopian Capital Market Authority (ECMA) has granted an investment banking licence to United Capital Financial Services PLC, a wholly owned subsidiary of Nigeria’s United Capital Group. The approval makes the company the first foreign institution authorized to establish investment banking operations in Ethiopia.

The licence was issued on June 5, 2026, following a regulatory review process involving the Ethiopian Capital Market Authority, the Ethiopian Investment Commission, and other government institutions.

The move represents another step in Ethiopia’s efforts to open its financial sector to international participation and attract foreign expertise, investment, and innovation into its emerging capital market.

According to ECMA, United Capital has committed more than $1.5 million in capital to support its Ethiopian operations and will establish a presence in Addis Ababa to provide investment banking services.

ECMA Director General Hana Tehelku said the licensing decision reflects the Authority’s commitment to building a competitive and globally connected capital market. She noted that extensive due diligence was conducted before approval, including reviews of the company’s regulatory standing and track record in Nigeria.

The Authority indicated that United Capital could eventually operate under multiple capital market licence categories, including investment banking and collective investment scheme management, as Ethiopia’s capital market continues to expand.

Market observers view the entry of the Nigerian financial services group as an important vote of confidence in Ethiopia’s economic reform agenda. The development is also expected to encourage additional foreign financial institutions to explore opportunities within the country’s nascent capital market ecosystem.

While foreign participation in Ethiopia’s capital market has remained limited, recent regulatory reforms have aimed to create a more attractive environment for international investors and financial service providers. The licensing of United Capital is widely seen as one of the first tangible outcomes of those efforts.

United Capital Group Chief Executive Officer Peter Ashade described the approval as a historic achievement for both Ethiopia and Nigeria, highlighting the growing importance of cross-border financial cooperation within Africa.

He said the company intends to contribute to the development of Ethiopia’s capital market through investment banking services, knowledge transfer, professional training, and capacity-building initiatives.

Beyond financial investment, Ethiopian regulators have emphasized the importance of human capital development. ECMA expects the company to recruit and train Ethiopian professionals, helping strengthen local expertise in investment banking, capital markets, compliance, and financial analysis.

United Capital’s Africa Director, Ejikeme Okoli, said the firm’s experience across multiple African markets positions it to support the development of Ethiopia’s financial sector as the country builds modern capital market institutions.

The Authority also revealed that it is collaborating with Nigeria’s Securities and Exchange Commission on regulatory benchmarking and capacity-building initiatives, reflecting broader efforts to adopt international best practices as Ethiopia’s capital market takes shape.

The arrival of Ethiopia’s first foreign investment bank comes at a pivotal moment for the country’s financial sector. As reforms continue and market infrastructure develops, policymakers hope increased participation from regional and international institutions will deepen market liquidity, broaden access to capital, and support long-term economic growth.