Ethiopia Licenses First Investment Banks in Deepening Reforms

Ethiopia granted its first investment banking licenses to two local firms in the nation’s latest effort to liberalize the tightly controlled economy.

The Ethiopian Capital Market Authority awarded permits to CBE Capital S.C. and Wegagen Capital Investment Bank S.C. The first is a subsidiary of the nation’s biggest commercial lender, while the second is a unit of the sole listed company on the nation’s bourse.

Ethiopia launched its stock exchange in January — as part of Prime Minister Abiy Ahmed’s drive to attract foreign investment — without brokerage firms or investment banks.

The regulator also handed brokerage and advisory permits ...