Sunday Ehigiator
United Capital PLC has secured investment banking licences in Ethiopia and Rwanda, marking a major milestone in its African expansion strategy and positioning the Nigerian financial services group as the first foreign institution licensed to provide full-scale investment banking services in Ethiopia.
The approvals allow the group to operate across financial advisory, securities brokerage, and portfolio management services, while also establishing a formal operational presence in both markets.
The development strengthens the company’s ambition to deepen capital market participation and expand access to investment solutions across the continent.
Speaking in an interview following the announcement, Group Chief Executive Officer of United Capital, Peter Ashade, described the achievement as both a corporate breakthrough and a reflection of Africa’s evolving financial landscape.
“It is indeed a whole lot worth celebrating, not just for us at United Capital, but for the entire Federal Republic of Nigeria. Because when a Nigerian institution becomes the first foreign firm to enter a market like Ethiopia in investment banking, it is a statement about what Nigeria can export in terms of capacity and professionalism.”
Ashade noted that Ethiopia represents one of Africa’s most significant growth markets, both in population and economic scale.
“When you look at Ethiopia, it is the second most populous country in Africa after Nigeria, with over 130 million people. So, it is a very significant market, and it is a country where a lot of transformation is currently happening.”
He added that the approvals were made possible by reforms in both Ethiopia and Rwanda, as well as strong regulatory collaboration across jurisdictions.
“I think first and foremost, I must thank the government of Rwanda and Ethiopia for creating this platform. Without the platform they created, we would not be able to take up this opportunity. They have created a transformational agenda that is driving financial market development in those countries.”
He also highlighted the role of regulators in both countries and in Nigeria, stressing that cross-border cooperation was essential in securing the licences.
“The leadership has been quite instrumental. I must appreciate the Ethiopian Capital Market Authority, the Rwanda Capital Market Authority, and the National Bank of Rwanda. One of our licences in Rwanda is a trust licence issued by the central bank, and that engagement was very important in the process.”
Ashade further acknowledged the support of Nigerian financial institutions, including the country’s securities regulator and stock exchange operator.
“I also want to appreciate the Nigerian leadership of the Securities and Exchange Commission and the Nigerian Exchange Limited. We are a listed company, and they supported us along the way. They were aware of our engagements, and they communicated with the relevant authorities. This level of cooperation made the process smoother and more transparent.”
Nigerian Exchange Limited played a notable role in ensuring regulatory alignment, he added, describing the expansion as a demonstration of Nigeria’s growing financial influence abroad.
According to Ashade, the milestone represents more than corporate growth, describing it as part of a broader shift in Africa’s financial integration.
“This is a strategic milestone, not only for United Capital, but for Africa. It is changing the narrative of how we relate with one another. The new African story is one of integration, collaboration, and shared growth across markets.”
He explained that the licensing process required extensive scrutiny, particularly around governance, financial strength, compliance standards, and institutional credibility.
“They were looking at our financial background, regulatory compliance, financial stability, and our track record in governance over the years. All of these were put to test. It was a strong and demanding process that we had to defend at every level. We are proud that we were able to meet those expectations.”
He linked the expansion to rising intra-African investment flows, driven by reforms such as the African Continental Free Trade Area.
“What we are seeing now is the acceleration of mutual trade and investment within Africa. Previously, investment flows were largely from outside the continent, but now we are seeing increasing capital movement between African countries. That is a very positive shift.”
Ashade said United Capital’s strategy is anchored in what he described as a belief in African-led development.
“Our vision is simple but powerful. We believe that the next growth phase in Africa will be determined by Africans. We are aligning with that belief, and we want to play a catalytic role in economic development across the continent.”
On Ethiopia, he pointed to strong macroeconomic indicators and recent reforms.
“Ethiopia has shown impressive growth performance. Between 2024 and 2025, the economy has recorded strong expansion, with forecasts of around 7.1 per cent GDP growth. There is also a clear reform agenda that is opening up the economy.”
He added that recent investment forums have attracted billions of dollars in commitments, particularly in energy, green infrastructure, manufacturing, and industrial development.
On Rwanda, he described the country as an emerging regional financial and innovation hub.
“Rwanda is positioning itself as a regional hub for innovation and financial services. It has recorded consistent GDP growth in the range of 5.2 to 5.5 per cent over the last two years, and it continues to attract investor confidence due to its stability and policy direction.”
Looking ahead, Ashade said the company is now focused on execution and delivering value from its expanding footprint.
“For us, what comes next is execution. We have been consistent over the years in what we promise and what we deliver. Now it is about ensuring that our African expansion translates into real value creation for investors and stakeholders.”
He reaffirmed the company’s commitment to shareholder returns, noting its track record of dividend payments.
“We have consistently delivered value to our shareholders. In the last two years, we have been paying interim dividends alongside final dividends. As our operations expand, we expect that scale will reflect in stronger earnings and continued value creation.”
On future expansion, he said the group will take a measured but opportunistic approach.
“For now, the priority is to consolidate our presence in these new markets. As opportunities emerge, we will evaluate them carefully. There is nothing impossible if it aligns with our long-term objective of wealth creation and sustainable growth.”
