ADDIS ABABA – The Ethiopian Capital Market Authority (ECMA) has issued an urgent public warning regarding the illegal sale of shares by Baira Share Company, also operating under the name “Arba Minch Water.”
Following a recent regulatory sweep, the Authority discovered that Baira Share Company has been offering shares to the public to fund a supposed water bottling factory. However, the ECMA confirmed that these shares are not registered, and the company has not obtained the mandatory pre-approval for its public advertisements on social media and mainstream outlets.
Under the legal framework of Proclamation No. 1248/2021, the ECMA is the sole body responsible for overseeing the nation’s capital markets and shielding investors from fraudulent practices.
The Authority clarified that the company’s current activities violate multiple financial regulations:
- Directive No. 1030/2024 (Article 4): Strictly prohibits the public offering of unregistered securities.
- Proclamation No. 1248/2021 (Article 106): Categorizes the sale of unregistered shares as a criminal offense.
- Directive No. 1030/2024 (Article 53): Prohibits the dissemination of investment advertisements without express regulatory approval.
Public Advisory: “Cease All Payments”
While an administrative investigation into Baira Share Company is currently underway, the ECMA has issued a strict directive to the public:
Do not purchase shares from Baira Share Company (Arba Minch Water) and refrain from making any payments to the company or its sales agents.
The Authority emphasized that investing in unregistered securities leaves individuals without legal protection and at high risk of financial loss.
How to Report Suspicious Activity
The ECMA is calling on the public to remain vigilant and report any suspicious or unauthorized share offerings. Protecting the integrity of Ethiopia’s emerging capital market is a collective responsibility.
To provide tips or file a complaint, use the following official channels:
- Phone: +251 115 576 123
- Email: complaints@ecma.gov.et