Nigeria’s United Capital Group has made a major breakthrough in East Africa after securing approval to operate investment banking services in Ethiopia. The license, issued on June 5, 2026, by the Ethiopian Capital Market Authority, positions the firm as the first foreign investment bank authorized to operate in the country’s emerging capital market.
The approval follows months of regulatory scrutiny involving multiple Ethiopian institutions, including the Ethiopian Investment Commission. United Capital will operate through its wholly owned subsidiary, United Capital Financial Services PLC, based in Addis Ababa, marking a historic entry into Ethiopia’s financial services sector and a significant step in opening up the country’s capital market to global players.
The move is widely seen as a vote of confidence in Ethiopia’s ongoing financial reforms and its ambition to build a competitive, globally integrated capital market. Analysts say the entry of a major Nigerian financial group could pave the way for more foreign investment banks and asset managers to explore opportunities in the East African nation, strengthening cross-border capital flows and regional financial integration.
Speaking on the development, ECMA Director General Hana Tehelku said the license reflects Ethiopia’s commitment to building a strong and globally competitive financial ecosystem while welcoming foreign expertise and investment. United Capital Group CEO Peter Ashade described the approval as a milestone moment, noting that the firm plans to support local capacity building, training, and the development of financial professionals in Ethiopia.
With an estimated capital injection of over $1.5 million and strong regulatory backing, United Capital’s expansion signals growing confidence in Ethiopia’s financial environment. The firm’s move comes amid broader recapitalization efforts in Nigeria’s capital market, reinforcing its readiness for cross-border growth and setting a precedent for other African financial institutions looking to expand beyond domestic markets.
source: nairametrics