Ethiopia crowdfunding consultation raises access concerns for private limited companies

Concerns over which businesses can raise money through Ethiopia’s proposed crowdfunding system surfaced at a consultation in Addis Ababa on October 15, 2026, according to The Reporter’s account published on October 17.

Participants questioned a proposed restriction to share companies, warning that it could leave private limited companies outside the fundraising framework. The discussion, organized by the Ethiopian Capital Market Authority at Skylight Hotel, focused on access to finance for startups and micro, small and medium-sized enterprises.

The Reporter identified Biniyam Kebede of Wegagen Capital and Behailu Tesfahun of Alpha Advocates LLP among those raising concerns. Their interventions highlighted a practical question for the proposed market: how early-stage businesses could use crowdfunding if their existing company structure does not qualify.

Solomon Bekele, a senior legal adviser at the authority, told the consultation that including private limited companies had been considered during drafting but faced obstacles under the Commercial Code, the newspaper reported. He pointed to conversion into a share company with formal governance arrangements as a route for businesses seeking access. That explanation was presented in the context of the draft; it does not mean a new crowdfunding rule has taken effect.

The authority’s official regulatory library separately lists a crowdfunding draft directive dated September 25, 2026. The Reporter said the authority was reviewing stakeholder feedback before finalization. The consultation therefore marks a debate over the design of the proposed system, rather than the launch of a new financing service.