Ethiopia's capital markets regulator has registered a new legal framework for collective investment schemes, opening the door for the wider public to invest in the country's financial markets.

The Collective Investment Schemes Operation Directive No. 1150/2026 was registered and approved by the Federal Democratic Republic of Ethiopia's Ministry of Justice on September 23, 2026, the Ethiopian Capital Market Authority (ECMA) announced.

Issued under the Capital Market Proclamation No. 1248/2021, the directive establishes rules for the establishment, registration, operation, and administration of collective investment schemes. It also sets out additional duties for scheme operators, custodians, and other professional parties.

"This Directive is a significant step in channeling the savings of Ethiopians into productive investment through professional management and strong investor protection," ECMA Director General Hana Tehelku said. "It broadens access to the capital market and opens the way for the wider public to share in the country's economic growth."

The directive recognizes six types of schemes: Money Market Funds, Mutual Funds, Real Estate Investment Funds, Exchange Traded Funds (ETFs), Alternative Investment Funds, and Special Designation Funds.

Under the rules, no scheme may be offered to the public without registration by the Authority. Scheme assets must be held by an independent custodian, separate from the operator, and schemes must make ongoing disclosures.

Operators and custodians are licensed under the Capital Market Service Providers Licensing and Supervision Directive No. 980/2024. The Authority will supervise registered schemes and their service providers.

ECMA said it is ready to work with scheme operators, custodians, investors, and other stakeholders to build a sound and trusted collective investment scheme market in Ethiopia.