Renowned Ethiopian-American dealmaker Zemedeneh Nigatu has been tapped as the founding chief executive of CBE Capital S.C., a groundbreaking development that coincides with the licensing of one of Ethiopia’s first investment banks. The Ethiopian Capital Markets Authority issued the landmark license to CBE Capital on March 21st, simultaneously granting a similar license to Wegagen Capital S.C., a spinoff of Wegagen Bank, signaling a new era for the nation's financial landscape.
Zemedeneh, a highly respected figure with over two decades of experience leading Ernst & Young’s East Africa operations, is set to steer CBE Capital—a joint venture majority-owned by the state-run Commercial Bank of Ethiopia and private firm Dallol Capital—into uncharted territory. His extensive track record includes brokering multibillion-dollar deals in pivotal sectors such as telecommunications, aviation, and infrastructure.
"We are honored to pioneer investment banking services in Ethiopia," said Zemedeneh. As chairman of Fairfax Africa Fund, a U.S.-based private equity firm he established, Zemedeneh has also been instrumental in forging crucial links between African markets and global investors, a network that is expected to be invaluable in his new role.
CBE Capital plans to offer a comprehensive suite of investment banking services, including underwriting initial public offerings (IPOs), managing mergers and acquisitions, and trading stocks and bonds. The firm also has its sights set on future expansion into portfolio management and Islamic finance.
Ethiopia, with its significant population of 130 million and an ambitious economic growth trajectory projecting a GDP of $1.6 trillion US dollars by 2050, is actively pursuing market liberalization. Zemedeneh, recognized as one of Africa’s 100 most influential people, is seen as a key player in this shift. His past experience advising the Ethiopian government on privatization and guiding foreign investors positions him uniquely to lead CBE Capital.
Abie Sano, chairman of CBE Capital and president of the Commercial Bank of Ethiopia, emphasized the significance of this appointment and the licensing, stating, "This achievement represents a significant step forward in Ethiopia’s financial markets transformation and positions CBE Capital to make meaningful contributions to the nation’s economic growth." The simultaneous licensing of Wegagen Capital further underscores the momentum building towards a more dynamic and modern financial system in Ethiopia.The story is from Birr Metrics.