Nigeria’s United Capital Group has become the first foreign financial institution to receive an investment banking licence in Ethiopia. The development also marks a significant milestone in the East African country’s efforts to open its tightly controlled financial sector to international investors.
The licence was granted on June 5 by the Ethiopian Capital Market Authority (ECMA), allowing United Capital to operate through its wholly owned subsidiary, United Capital Financial Services PLC. The approval makes the Lagos-based firm the first foreign investment bank authorised to establish a licensed presence in Ethiopia’s nascent capital market.
The move represents another step in Ethiopia’s broader economic liberalisation programme under Prime Minister Abiy Ahmed, which has gradually opened sectors previously reserved for domestic players. The country launched its capital market framework only recently and issued its first-ever investment banking licences to local firms in 2025.
Under the licence, United Capital will provide investment banking services including financial advisory, securities brokerage and portfolio management. The company said the approval would enable it to participate directly in Ethiopia’s capital market development while expanding its presence across East and Central Africa.
The approval followed months of regulatory review involving ECMA, the Ethiopian Investment Commission and other government agencies. Ethiopian regulators said the process included extensive due diligence and verification of the company’s standing with Nigerian authorities before the licence was granted.
According to ECMA, the licence increases the number of investment banks operating in Ethiopia to seven and raises the total number of licensed capital market service providers to 18. The regulator said the entry of foreign institutions is expected to support the growth of the country’s emerging capital market ecosystem.
United Capital’s expansion comes weeks after it secured regulatory approval in Rwanda to offer investment banking, portfolio management and trust services, reinforcing its strategy of building a pan-African financial services network.
Group Chief Executive Officer Peter Ashade said Ethiopia and Rwanda represent two of Africa’s most promising growth markets, citing ongoing economic reforms, a large and youthful workforce, and increasing investor interest in the region.
The licence also highlights growing financial ties between Nigeria and Ethiopia as African firms increasingly seek opportunities beyond their home markets. For Ethiopia, the decision signals a willingness to attract foreign expertise and capital as it builds a modern securities market capable of financing future economic growth.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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