CBE Capital S.C.

Overview

CBE Capital S.C. is an Ethiopian investment banking firm established as a joint venture majority-owned by the Commercial Bank of Ethiopia (CBE) and Dallol Capital. It was one of the first two companies to receive an investment banking license from the Ethiopian Capital Market Authority (ECMA) in March 2025, marking a significant milestone in Ethiopia's financial sector liberalization. The firm offers services including capital raising, securities underwriting, mergers and acquisitions advisory, and corporate advisory. Future plans include expanding into portfolio management and Islamic finance. CBE Capital is expected to play a significant role in Ethiopia’s nascent capital market, supporting the country's growing demand for financial intermediation, corporate financing, and structured investment products. The establishment of CBE Capital aligns with the Ethiopian government's broader economic reforms aimed at liberalizing financial services, fostering a competitive investment environment, and increasing private sector participation in the economy. The firm's CEO, Zemedeneh Nigatu, brings decades of experience to the role, having previously served as the Managing Partner for Ernst & Young in East Africa and as the chairman of Fairfax Africa Fund. Under his leadership, CBE Capital aims to drive financial market development in Ethiopia and contribute to the nation's economic growth. The firm's establishment is seen as a critical step toward developing a functional capital market in Ethiopia, introducing new tools for capital raising and investment, and opening the door to increased private sector participation in the economy. The licensing of CBE Capital and Wegagen Capital Investment Bank S.C. represents a transformative shift in Ethiopia’s financial sector, which had previously only included advisory firms. This development is expected to diversify and strengthen the capital market by offering services such as securities brokerage, investment advisory, and capital raising, thereby enhancing market efficiency and creating better opportunities for capital raising. The inclusion of these new service providers reflects the maturing nature of Ethiopia’s capital market, which is increasingly positioned to cater to both local and international investors. The licensing of CBE Capital and Wegagen Capital is particularly noteworthy, as both are substantially owned by major commercial banks—Commercial Bank of Ethiopia (CBE) and Wegagen Bank, respectively. This development aligns with a recent National Bank of Ethiopia directive that allows banks to acquire up to 100% equity in capital market service providers, facilitating further growth and diversification in the financial sector. Additionally, the new licenses underscore the increasing role of women in Ethiopia's financial landscape, with Wegagen Capital Investment Bank and HST Investment Advisory Services PLC being led by female CEOs, showcasing a positive shift toward greater gender inclusivity in the industry. The establishment of CBE Capital S.C. and its subsequent activities, including signing investment banking agreements with companies like Waliif Investment and Hibret Insurance, highlight its active role in Ethiopia's emerging capital market. These partnerships aim to support the firms' efforts to reduce import dependence, expand value-added exports, and boost foreign exchange earnings, thereby contributing to the country's economic development and financial sector growth. The firm's involvement in these agreements demonstrates its commitment to fostering economic growth and financial market development in Ethiopia, aligning with the nation's broader economic reforms and liberalization efforts.