​Ethiopia’s capital market has expanded with the licensing of two new private investment banks, AMG Investment Bank and NileBridge Investment Bank, incorporating foreign partnership and diversifying the growing financial sector.

​The Ethiopian Capital Market Authority announced the official licensing of both institutions following a rigorous four-month evaluation process. Alongside the operational permits, the regulatory body formally approved the appointments of eight designated representatives and ten board members to oversee governance and strategic direction for the incoming financial firms.

​Director General Dagmawit Shiferaw stated that these approvals bring the total number of authorized capital market service providers in the country to 23, with investment banks alone increasing to 11. Unlike previous entrants, which were predominantly subsidiary companies of traditional domestic commercial banks, these new entities feature significant private sector and international partnership involvement.

​Despite the successful authorization, the regulatory review highlighted distinct capacity hurdles during the vetting stage. Due to the novelty of a formal capital market in Ethiopia, both institutions faced notable challenges in sourcing and recruiting qualified professionals meeting the strict regulatory criteria for critical operational roles.

​Addressing these standards, the Authority emphasized its commitment to safeguarding market integrity by stringently assessing governance documents, biographical histories, and human resource competencies to prevent conflicts of interest. As these institutions begin operations, policymakers anticipate that the infusion of private and foreign expertise will introduce fresh perspectives and enhance liquidity across the developing Ethiopian financial ecosystem.