Capital Market Tribunal Steps onto the Field

Aug 10 , 2025. By BEZAWIT HULUAGER ( FORTUNE STAFF WRITER )

After four years of legislative gestation and eight months of bureaucratic buildup, the first dedicated capital markets court, the Ethiopian Capital Market Administrative Tribunal (ECMAT), is on the brink of hearing its first cases.

Housed in Addis Abeba’s Wastena Commercial Centre on General Wingate St., a short walk from the Central Statistics Agency, the Tribunal commands an annual budget of 87 million Br and a sweeping mandate to adjudicate insider trading, market manipulation, regulatory breaches, and investor grievances.

Its design blends judicial gravitas with market literacy, placing Federal High Court–qualified judges alongside financial and commercial specialists.

Prime Minister Abiy Ahmed (PhD) has appointed Abenet Zerfu as a presiding judge, marking a shift from his longstanding advisory role in government to the bench. Abenet brings over a decade of legal and policy experience, having served six years as head of legal opinion and international law affairs at the Prime Minister’s Office, where he played a central role in interpreting and advising on administrative and international legal matters.

“For business, things move by days and hours.” Abenet Zerfu Presiding Judge Ethiopian Capital Market Administrative Tribunal (ECMAT)

Before his tenure in the federal executive branch, he served as an administrative law judge at the Ethiopian Commodity Exchange (ECX), where he adjudicated disputes. His academic credentials span multiple disciplines, from an undergraduate degree in international law from the Ethiopian Civil Service University, postgraduate studies in gender and development at Bahir Dar University, and ongoing professional training in International Financial Compliance with the Chartered Institute for Securities & Investment in the UK.

He plans to cut the legally permissible 90-day ruling window to 30 days when feasible.

“For business, things move by days and hours,” he told Fortune.

The Tribunal’s process mirrors established administrative law frameworks. Investors have 28 days to appeal decisions made by the Ethiopian Capital Market Authority (ECMA); late filings are accepted only in exceptional cases. Hearings are collegial but chaired by the presiding judge, and rulings can affirm, overturn, or remand regulatory actions.

Appeals are permitted solely on points of law to the Federal High Court, insulating ECMAT’s fact-finding from endless review. Enforcement powers match those of civil courts, giving the Tribunal teeth beyond mere recommendation.

Institutional credibility is an early priority. FSD Ethiopia is underwriting the drafting of procedural rules and a guidebook for judges and lawyers, complete with case studies, to ensure predictability and legal rigour in rulings.

Market actors are cautiously optimistic.

Anteneh Kassa, CEO of Ethio Fidelity Securities, calls the Tribunal overdue but vital to instilling investor trust as ECMA pushes to list nine institutions in the coming year. However, the secondary market for Treasury bills (T-bills), a bellwether of market depth, has fallen short of expectations.

Still, shadows of political capture loom large. Girum Amha, an economist with expertise in capital markets, warns that Ethiopia’s appointment system resembles politically vulnerable models in Kenya and the United States. In such setups, administrative courts risk becoming appendages of executive will, undermining their oversight role.

“This leaves parties with no meaningful recourse,” Girum said, “which can be abused for political or personal gain.”

There are also professional discipline gaps. According to ECMA legal adviser, Solomon Bekele, the authority has plans for an approval regime to exclude repeat offenders from the market in he absence of authority to revoke licences from legal advisers.

PUBLISHED ON Aug 10,2025 [ VOL 26 , NO 1319]