ZamZam Bank Secures Landmark ECMA Share Registration Approval

The Ethiopian Capital Market Authority (ECMA) has officially approved the registration of securities for ZamZam Bank S.C., the regulator announced on July 6. The approval, granted on June 29, 2026, marks a pivotal step in the bank’s capital expansion strategy and establishes it as the first fully interest-free financial institution to secure regulatory clearance under Ethiopia’s new capital market framework.

The registration covers a total of six million shares. This includes five million (5,000,000) existing ordinary shares currently held by the bank’s shareholders, and one million (1,000,000) new shares authorized for future issuance to both existing and new investors. This process was executed pursuant to Articles 4 and 29 of the Public Offer and Trading of Securities Directive No. 1030/2024, which mandates the registration of all public securities—including those issued prior to the directive—to ensure transparency and regulatory oversight.

ZamZam Bank has officially secured regulatory clearance from the Ethiopian Capital Market Authority (ECMA) to register its shares, becoming the first fully interest-free bank in Ethiopia to achieve this milestone under the nation’s new capital market framework. The approval, announced during a joint press briefing with transaction adviser Wegagen Investment Bank on Friday, marks a significant shift in the country’s Sharia-compliant financial landscape.

Under the regulatory mandate established by the Public Offer and Trading of Securities Directive No. 1030/2024, the ECMA has approved the registration of 5,000,000 existing ordinary shares valued at 5 billion birr. Furthermore, the bank has received authorization to issue an additional 1 million shares worth 1 billion birr, which will be executed through a strategic combination of bonus shares and a rights offering to support its capital expansion plan.

As the first interest-free lender to secure ECMA clearance, ZamZam Bank is setting a precedent for Sharia-compliant financial institutions operating within Ethiopia’s regulated securities market.

The registration aligns with a broader mandate from the bank’s shareholders to aggressively scale paid-up capital toward a 15-billion-birr target.

This approval enables the bank to transition toward future public share offerings, ensuring full compliance with the emerging legal framework governing transparency, disclosure, and investor protection.

“This approval is a pivotal step in our efforts to strengthen our capital base and expand access to Sharia-compliant financial services,” the bank stated during the briefing. The move comes as Ethiopia’s capital market gathers significant momentum, with a flurry of registrations from major lenders—including Addis, Abay, and Bunna Banks—over the past several weeks. With these latest filings, the total number of registered issuers now stands at 13, signaling a rapid maturation of the domestic financial ecosystem.

Since its inception five years ago, ZamZam Bank has emerged as a cornerstone of Ethiopia’s interest-free banking sector. By moving its share structure under the oversight of the ECMA, the bank is not only formalizing its equity governance but also providing a structured, regulated framework for its shareholders.

As the ECMA continues to accelerate the registration of securities to foster domestic capital formation, analysts view this development as a critical indicator of the growing institutional confidence in Ethiopia’s financial reforms. For investors, the registration represents a move toward greater transparency and the creation of alternative long-term financing channels within one of the region’s fastest-growing banking segments.