Gadaa Bank is preparing to launch a capital markets subsidiary with an initial capital of 80 million birr, aiming to provide securities brokerage, dealing, and investment advisory services, as reported by Birrmetrics. 

Gadaa Bank owned 75% of the new unit, which will support securities trading for both institutional and retail clients, facilitate capital raising, and offer advisory services. The remaining 25% of the shares are held by four co-investors, including Oromia Insurance, a sister company of Gold Water, and one individual shareholder.

Birrmetrics reported that the bank submitted its application to the Capital Market Authority on Tuesday, with regulatory approval expected within two months.

Gadaa Bank became the second commercial bank to list on the Ethiopian Securities Exchange (ESX) in June, signaling its intent to play a larger role in Ethiopia’s evolving capital markets. The new subsidiary is expected to evolve into a full-service investment bank over time, in line with ongoing regulatory reforms.

The company would enter a market with limited competition. Only one firm, Ethio-Fidelity Securities—is licensed as a standalone securities dealer, while two others, CBE Capital and Wegagen Capital Investment Bank, offer brokerage services under investment bank licenses. Gadaa’s entry would mark the fourth entity permitted to engage in brokerage and dealer activity once licensed.

A CEO has already been nominated to lead the new firm, though the appointment has not yet been publicly disclosed.

Financial results released last week show the bank posted a profit of 515 million birr for the 2024/25 fiscal year. Total assets climbed to 10.1 billion birr, up 80% year-on-year, while customer deposits rose 91% to 7.7 billion birr.