United Capital Financial Services Ethiopia (UCFS Ethiopia) has been appointed as a Joint Issuing House, Official Stockbroker and Lead Distributor for the initial public offering (IPO) of Nigeria’s Dangote Petroleum Refinery, opening a new cross-border investment opportunity for qualified Ethiopian investors.

The company, a subsidiary of United Capital Plc, will coordinate local investor participation and share distribution alongside other issuing houses and distributors, including CBE Capital, Wegagen Capital and Awash Capital. The offering is being conducted under the regulatory oversight of the Ethiopian Capital Market Authority (ECMA) and the Ethiopian Securities Exchange (ESX).

The IPO involves 4.1 billion shares valued at approximately $1.5 billion, making it one of Africa’s major equity offerings. The initiative aims to attract more than 10 million shareholders, according to a press release issued by UCFS Ethiopia.
The investment opportunity was presented at the Dangote IPO Ethiopia Investor Roadshow held in Addis Ababa on October 15, 2026. The event was hosted by the Ethiopian Securities Exchange and brought together Aliko Dangote, representatives of the Ethiopian and Nigerian capital market institutions, and prospective investors.
The refinery, which has a stated capacity of 650,000 barrels per day, is described as the world’s largest single-train refinery. The project is considered a significant industrial investment in Africa’s efforts to strengthen energy security and expand refining capacity.

UCFS Ethiopia has also proposed launching an Ethiopian Depository Receipt (EDR) following the allocation of shares. The instrument would represent shares in a company listed on a foreign market, enabling eligible Ethiopian investors to hold an interest in the refinery through a locally issued instrument operating within Ethiopia’s regulatory framework.
Ejikeme Okoli, Director of Africa Operations at United Capital Plc, said the offering would allow qualified Ethiopian investors to participate in one of Africa’s significant industrial enterprises through an instrument issued locally.
He added that the initiative could contribute to deeper integration among African capital markets by connecting investment capital with businesses across national borders.
Peter Ashade, Group Chief Executive Officer of United Capital Plc, said bringing the offering to Ethiopia demonstrated the potential for cross-border investment to support African enterprises. He also emphasized the group’s commitment to expanding its presence in the Ethiopian market.

Participation in the Ethiopian offering is restricted to qualified institutional investors who meet the eligibility requirements under applicable Ethiopian capital market laws and directives.

UCFS Ethiopia said it would operate within its approved role as Lead Distributor and would not provide securities brokerage or trading services in Ethiopia.

Ethiopia’s economic reform agenda has entered its most consequential phase, but a persistent gap between policy ambition and implementation threatens to erode public confidence and delay the promised dividends of a market-oriented economy, experts warned at a national roundtable discussion.

The call was made during a discussion on trade, investment, and competitiveness organized by the Forum for Social Studies (FSS) in collaboration with the Center for International Private Enterprise (CIPE). Participants emphasized that successful economic transformation requires more than policy announcements, stressing the necessity of effective implementation, continuous monitoring, and measurable results.

Berhanu Denu, an economist at Addis Ababa University and an FSS member, welcomed efforts to open up the economy and expand private-sector participation. However, he cautioned that reforms could produce unintended consequences, including rising inflation and declining household purchasing power.

Ethiopia’s economic transformation is taking place against a backdrop of structural challenges, including widespread dependence on small-scale agriculture, limited business financing, and pressure on household livelihoods.

Berhanu said policymakers should avoid unrealistic expectations about the speed at which recently introduced reforms can deliver results. Instead, authorities should closely monitor progress and take corrective action when implementation falls short of expectations. He also emphasized the importance of predictable policies and carefully sequencing reforms to minimize disruption and build confidence among businesses and citizens.

Rising prices remain a major concern, particularly for people dependent on fixed incomes whose earnings may not keep pace with increasing living costs. Inflation can erode savings, reduce purchasing power, and undermine household living standards. Berhanu called for targeted support for individuals and groups experiencing temporary economic hardship, arguing that measures to protect vulnerable communities should complement broader efforts to improve economic efficiency and expand private-sector activity.

Participants stressed that the long-term benefits of reform must be balanced against the immediate difficulties some households face during the transition.

Financial-sector reform and business competitiveness were also key topics. Participants identified access to foreign currency, financing constraints, and weaknesses in the investment environment as challenges that could limit the private sector’s ability to benefit from market-opening measures.

Businesses that depend on imported machinery, raw materials, and technology require reliable access to foreign currency to maintain production and expand operations. Stakeholders therefore called for improvements in the financial system and a more predictable regulatory environment to encourage investment. They also emphasized the need to diversify financing options beyond conventional bank loans. Developing capital markets and expanding access to debt and equity instruments could help businesses secure long-term funding, increase production, and improve competitiveness.

Furthermore, stakeholders urged stronger coordination among institutions responsible for implementing reforms, warning that inconsistent regulations, unclear responsibilities, and bureaucratic delays could undermine policy objectives. They called for progress to be assessed through measurable indicators, including investment, productivity, business competitiveness, access to finance, and export performance. Berhanu stressed that security concerns and pressure on household livelihoods must also be considered when evaluating the broader impact of these economic changes.

U.S. Secretary of State Marco Rubio has warned that rising military tensions along the Ethiopia-Eritrea border could escalate into a wider conflict, urging regional leaders to exercise restraint following recent insurgent attacks inside Ethiopia.

Rubio expressed deep concern over reports of troop movements on both sides of the shared frontier, cautioning that a continued buildup dramatically increases the risk of a confrontation that could draw in neighboring nations.

“You see troops surging on both sides of the border, and anytime you see troops on both sides of a border in a place like that, you’re always worried that can turn into a broader conflict,” Rubio said. “It’s a time to sort of be wise and measured and the last thing the world needs right now is another war.”

Addressing Washington’s recent decision to ease select economic sanctions on Eritrea, Rubio described the measures as limited but essential for opening diplomatic channels with Asmara. He emphasized that maintaining direct lines of communication with both capitals is vital if the U.S. is to assist as an effective mediator.

“It’s hard to serve the role of mediator and peacemaker unless you can talk to both sides,” Rubio said, noting that while Washington traditionally maintains closer ties with Addis Ababa, U.S. officials have increased direct engagement with Eritrean authorities in recent months.

Rubio acknowledged the severe security challenges facing the Ethiopian government, directly referencing recent violent separatist attacks and drone strikes aimed at key infrastructure near the capital. While affirming that the U.S. firmly opposes terrorism and understands Ethiopia’s need to secure its territory, he warned that military counter-responses must be carefully calibrated to prevent a regional spillover.

Rubio stated he spoke personally with Ethiopian officials this week to reiterate the importance of a measured response.

The U.S. warning comes amid heightened international anxiety over stability across the Horn of Africa, where renewed hostilities between Ethiopia and Eritrea could disrupt critical Red Sea shipping corridors and trigger severe humanitarian consequences. Washington hopes expanded diplomatic engagement with both governments will de-escalate border friction before tensions spark open conflict.