Nigeria’s United Capital secures Ethiopia’s first foreign investment banking licence

Nigeria’s United Capital Group has become the first foreign institution to receive an investment banking licence in Ethiopia, marking a significant step in the East African nation’s efforts to open up and strengthen its emerging capital market.

According to Capital Ethiopia, the Ethiopian Capital Market Authority granted the licence to United Capital on June 5, 2026, after months of regulatory review and legal assessments involving the Authority, the Ethiopian Investment Commission and other government institutions.

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The Nigerian financial services group will operate through its wholly owned subsidiary, United Capital Financial Services PLC, based in Addis Ababa. The company said it has committed more than $1.5 million in capital to support its investment banking operations in Ethiopia.

Speaking exclusively to Capital Ethiopia, Hana Tehelku, ECMA Director General said the approval reflects Ethiopia’s ambition to build a strong and globally competitive capital market while attracting foreign expertise and investment.

She said the Authority conducted extensive due diligence before granting the licence, including verifying United Capital’s regulatory standing with relevant Nigerian authorities.

According to Tehelku, the company may eventually operate under as many as four licence categories, including investment banking and collective investment scheme management.

The approval is widely seen as a vote of confidence in Ethiopia’s young capital market and could encourage more international financial institutions to enter the country. While D & T Management Consulting, a Deloitte subsidiary, had earlier received a securities investment adviser licence, United Capital is the first foreign institution to secure an investment banking licence.

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Peter Ashade, United Capital Group Chief Executive Officer, described the approval as a landmark achievement and praised the Ethiopian government and Prime Minister Abiy Ahmed for reforms aimed at modernising the country’s financial services sector.

“We are honored to be the first foreign institution licensed to provide financial services in Ethiopia,” Ashade told Capital Ethiopia. “This is a milestone for both Nigeria and Ethiopia and reflects the growing strength of pan-African financial cooperation.”

Ashade said the company plans to contribute to the development of Ethiopia’s capital market through human capital development, capacity building and professional training programmes.

Tehelku said the Authority expects the firm’s impact to extend beyond financial investment.

“The greatest contribution expected from the company is not only financial capital, but also human capital and technical expertise,” she said, adding that United Capital would be required to hire, train and empower Ethiopian professionals to help expand the country’s pool of investment bankers, analysts and compliance specialists.

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Ejikeme Okoli, United Capital’s Africa Director, said the company’s experience across several African markets positions it to support the growth of Ethiopia’s financial sector.

He noted that Ethiopia forms part of the group’s broader pan African expansion strategy and expressed confidence that the company would play a meaningful role in accelerating the development of the country’s capital market ecosystem.

The Ethiopian Capital Market Authority also disclosed that it is working closely with Nigeria’s Securities and Exchange Commission on regulatory benchmarking and capacity building initiatives, further strengthening cooperation between the two countries’ financial sectors.