Ethiopia's Capital Market Approves First Share Registration by Interest-Free Bank

July 4, 2026
By Mintesinot Nigussie

ZamZam Bank has secured regulatory approval to register 6 billion birr worth of shares with the Ethiopian Capital Market Authority (ECMA), becoming the first fully interest-free bank to complete the process under Ethiopia's new capital market framework.

The registration covers the bank's existing share capital of five million ordinary shares valued at 5 billion birr, together with one million additional shares worth 1 billion birr. The additional shares will be issued through a combination of capitalising retained earnings into bonus shares and a rights offering to existing shareholders.

The approval authorises the bank to proceed with the sale of its registered shares in accordance with Ethiopia's Public Offer and Trading of Securities Directive No. 1030/2024, expanding the range of institutions entering the country's capital market.

According to ZamZam Bank, the approval also represents a regional milestone, making it the first fully interest-free bank in East, Central and Southern Africa to obtain regulatory clearance to register and offer shares under a capital market regime.

The bank entered the Ethiopian banking industry five years ago as the country's first fully interest-free bank and has since pursued capital expansion to support its growth.

ZamZam Bank disclosed the approval during a joint announcement in Addis Ababa with its transaction adviser, Wegagen Investment Bank, describing the registration as a significant step in its capital raising programme.

Source: FSX Business News