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Nigeria’s United Capital Group has received approval from the Ethiopian Capital Market Authority (ECMA) to operate investment banking in Ethiopia.
The license, issued on June 5, 2026, marks the first foreign investment banking license granted by ECMA, following months of regulatory review and legal vetting involving the Capital Market Authority, the Ethiopian Investment Commission, and other government institutions.
United Capital will operate through a wholly owned local subsidiary, United Capital Financial Services PLC, establishing the first foreign investment bank in Addis Ababa.
The development is seen as a landmark for Ethiopia’s emerging capital market and signals confidence in the country’s financial reforms and regulatory framework.
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The entry of United Capital is expected to attract other foreign financial institutions, strengthening Ethiopia’s capital market and promoting regional integration in financial services across Eastern Africa.
What they are saying
Hana Tehelku, ECMA Director General, stated that the license reflects Ethiopia’s strategy to develop a globally competitive capital market while welcoming foreign expertise and capital inflows.
She said the license reflects Ethiopia’s efforts to build a robust and globally competitive capital market while opening the door to foreign expertise and capital inflows, adding that the regulator carried out extensive due diligence, including verification of the company’s regulatory standing with Nigerian authorities before approving the application.
Peter Ashade, CEO of United Capital Group, expressed excitement at the milestone.
- “We are honored to be the first foreign institution licensed to provide financial services in Ethiopia,” Ashade said.
He added that United Capital plans to support human capital development, capacity building, and training of local professionals, contributing to the growth of Ethiopia’s nascent capital market.
More insights
The Ethiopian Capital Market Authority was formally established in June 2021 as an autonomous federal government agency. According to ECMA, United Capital may eventually operate under up to four licence categories, including investment banking and collective investment scheme management.
United Capital has reportedly injected more than $1.5 million in capital to fund its operations in Ethiopia.
While D & T Management Consulting, a Deloitte subsidiary, was previously licensed as a securities investment adviser, United Capital is the first foreign firm to obtain an investment banking license, signalling confidence in the country’s financial regulatory environment.
The move is expected to encourage other foreign capital market players to explore opportunities in Ethiopia and contribute to the development of the region’s investment banking landscape.
What you should know
In May 2026, United Capital Plc completed the recapitalisation of its SEC-regulated subsidiaries, surpassing the revised minimum capital requirements set under the Investments and Securities Act 2025. The milestone was achieved more than 14 months ahead of the June 30, 2027, compliance deadline.
Fund and Portfolio Managers must maintain N5 billion (up from N150 million), Trustees N2 billion (up from N300 million), and Issuing Houses N7 billion (up from N200 million).
The revised capital framework aims to enhance market resilience, investor protection, and the capacity of capital market operators to manage the evolving risk profile of financial services in Nigeria and, by extension, in new markets like Ethiopia.
United Capital’s expansion into Ethiopia demonstrates its strengthened capital position and readiness to operate beyond Nigeria, setting a precedent for other Nigerian financial institutions to pursue cross-border opportunities.
