The Capital Market May Be Too Shallow to Swim In. Beware.
Banks have a new obsession. After decades chasing deposits and, more recently, digital banking, they are scrambling to attach investment-banking arms to their franchises. The state-owned colossus, Commercial Bank of Ethiopia (CBE), is in the vanguard; Wegagen, Awash and Siinqee are not far behind.
Two novelties, the birth of the Ethiopian Securities Exchange (ESX), the country's first organised capital market, and the creation in 2023 of the Ethiopian Capital Market Authority (ECMA), headed by Hana Teheklu, once a state prosecutor, have sparked the frenzy. The prospect of underwriting fees...