Analysis of the ECMA CIS Directive Draft: A New Era for Ethiopian Collective Investments

The Ethiopian Capital Market Authority (ECMA) has circulated a draft Collective Investment Schemes (CIS) Directive dated July 2025 that is nothing short of a constitutional framework for the asset management industry. For legal practitioners and market entrants, this draft is the blueprint for how Ethiopia will mobilise retail and institutional capital moving forward. At Hirko and Associates Law Office, we have analyzed the pragmatic shifts this directive introduces. It transforms vague statutory provisions into operational reality.

Previously, the concept of a collective fund was abstract. The draft directive concretizes the market by registering four specific types of schemes. First, the Public Mutual Fund Company, a vanilla share company listed on an exchange. Second, the Public Real Estate Investment Fund (REIF) , which allows the public to invest in income-generating buildings without buying physical property. Third, Alternative Investment Funds (AIFs) for sophisticated, qualified investors via private placement. Fourth, a flexible Special Designation Scheme for products that do not fit the standard mould.

For the Ethiopian market, this means product differentiation. A lawyer advising a client can now clearly map a business model—whether a REIF for a mixed-use development or a mutual fund for treasury bills—to a specific regulatory pathway.