Ethiopia’s First Private Investment Bank Clears Its First Profit Hurdle

August 22, 2026
By Mintesinot Nigussie

Ethiopia’s first private investment bank, Wegagen Capital Investment Bank, has cleared its first profit hurdle, posting 46.6 million birr in profit before tax in its first full year of commercial operations after recording a 14.4 million birr loss in its initial operating period.

The investment bank generated 140.99 million birr in revenue in the financial year ended June 30, 2026, compared with about 8 million birr in the previous period, the bank announced.

The sharp increase in revenue was driven mainly by advisory and brokerage activities as Wegagen Capital expanded its operations in Ethiopia’s emerging securities market.

Advisory services generated 89.89 million birr during the year, while brokerage commissions contributed 6.85 million birr. The investment bank also reported securities turnover of 2.69 billion birr.

Wegagen Capital was among the first two investment banks to receive licences from the Ethiopian Capital Market Authority in March 2025, alongside CBE Capital Investment Bank. Its affiliation with privately owned Wegagen Bank makes it the first licensed private-sector investment bank in the country.

The investment bank received trading membership from the Ethiopian Securities Exchange in May 2025, giving it access to the country’s newly established securities trading platform.

The latest results provide an early financial measure of investment banking activity in Ethiopia, where the securities market is still in its formative stages. The Ethiopian Securities Exchange began trading in January 2025, creating a new market for securities trading, brokerage and investment banking services.

At the extraordinary general meeting, shareholders approved the capitalisation of 100 percent of distributable profit through a rights issue to existing shareholders. Shareholders will retain the option to receive dividends in cash.

The capitalisation is intended to strengthen Wegagen Capital’s capital base and support the expansion of its investment banking, advisory and securities trading businesses.

The investment bank also reported progress in governance, technology, human resources, risk management and market capabilities during the year.

Source: FSX Business News