The Ethiopian Capital Markets Authority (ECMA) has released draft rules to establish an Investment Protection Fund aimed primarily at compensating small private investors in cases of broker related misconduct while excluding large corporations and institutional investors from coverage. The draft regulation was presented during a stakeholder forum and is anchored in Article 103 of the Capital Market Proclamation No. Under the proposal, the fund would provide compensation for losses arising from a broker’s negligence, fraud, or insolvency. To support recovery of paid-out funds, the draft includes a mechanism to reward information that helps locate or identify hidden or misappropriated assets linked to broker failures. The draft rules are part of broader efforts to develop Ethiopia’s emerging capital market infrastructure and improve confidence among first-time retail investors.

Source: Ethiopian News January 26, 2026 08:31 UTC