What role do institutional investors and fund managers play in Ethiopia?

Institutional investors are large organisations — pension funds, insurers, banks and professional fund managers — that invest big pooled sums on other people's behalf. Their participation deepens liquidity and adds stability as a market matures.

In Ethiopia, banks and insurers are already central: many are among the first companies to register shares and list, and insurers and banks have themselves invested in the ESX. ECMA's July 2024 study of shareholder patterns in Ethiopian financial institutions examines this ownership base.

“Securities Portfolio Manager” is a licensed CMSP role under Directive No. 980/2024, giving professional fund managers a regulated basis to operate as the investor base broadens beyond individuals.