Ethiopia's Capital Market Authority Outlines Custody Framework for Foreign Investors

The Capital Market Authority has detailed a strict custody chain framework designed to show regulators exactly who holds security assets in the emerging market. Under these rules, a designated custodian licensed directly by the Authority will be tasked with holding or monitoring all securities owned by foreign investors. International custodians seeking to operate in the Ethiopian market must work through a licensed domestic sub-custodian or a local affiliate. Foreign investors are required to sign formal custody agreements prior to making any investment activities. Furthermore, any sub-custodian arrangements must receive official approval from the Capital Market Authority before taking effect. Custodians will bear the central responsibility of overseeing asset registration, safekeeping, and processing relevant financial transactions.