Brighter Prospects as United Capital Expands to East Africa

Sunday Ehigiator

Since it got listed on the Nigerian Exchange in 2013,  leading     pan-African investment banking and financial services group, United Capital Plc, has been performing very well, satisfying all stakeholders.

For instance, shareholders have enjoyed significant returns on their investments, while customers have also enjoyed best of services.
Apart from  regular dividend to the shareholders following its growing profitability, United Capital has also  delivered over 700 per cent in shareholder value for the last seven years in terms of share price, since 2018.

Also, the company has been ranked  fourth time  fastest growing publicly listed company in Africa by the Financial Times.
And in line with its  quest to expand beyond Nigeria and  continue to satisfy  all stakeholders,  United Capital, has  successfully acquired  investment banking licences in Ethiopia and Rwanda.

With these approvals, United Capital becomes the first foreign institution licensed to provide investment banking services in Ethiopia, covering financial advisory services, securities brokerage and portfolio management, marking a significant milestone in the development of the country’s emerging capital market ecosystem.

The licence enables the group to establish operations in Ethiopia and participate in capital market activities, supporting market development while expanding access to its range of financial and investment solutions across the region.
The Ethiopian Capital Market Authority said the approval followed a comprehensive regulatory review process involving multiple government institutions and extensive cross-market due diligence.

Before now, the group  also recently secured regulatory approval from the Capital Market Authority (CMA) to provide Trust Services, Investment Banking and Portfolio Management Services in Rwanda.

These milestones have further reinforced the company’s strategic footprint across East and Central Africa.
Group Chief Executive Officer of United Capital,  Peter Ashade, said Ethiopia and Rwanda represent two of Africa’s most significant growth opportunities.

“We are pleased to receive these licences at an important moment in the region’s capital market development journey. The region’s strategic location as an international trade route connecting Africa and the East, a large youthful workforce, and ongoing reforms are expected to continue attracting foreign investment,” he said.

 Getting these new  licences  may appear to some people as an easy task, but United Capital’s good governance, credibility and performance record, among other factors played a major role in this successful expansion bid.

According to the Director, Africa Operations, United Capital, Mr. Ejikeme Okoli,  the governance structure, impressive performance record of the company and   support of   regulators of the markets facilitated this  achievement, describing it   both as a corporate breakthrough and a reflection of Africa’s evolving financial landscape.

He explained that the licensing process required extensive scrutiny, particularly around governance, financial strength, compliance standards, and institutional credibility.

“They were looking at our financial background, regulatory compliance, financial stability, and our track record in governance over the years. All of these were put to test. It was a strong and demanding process that we had to defend at every level. We are proud that we were able to meet those expectations,” Okoli said.

He also highlighted the role of regulators in both countries and in Nigeria, stressing that cross-border cooperation was essential in securing the licences.

“The leadership has been quite instrumental. I must appreciate the Ethiopian Capital Market Authority, the Rwanda Capital Market Authority, and the National Bank of Rwanda. One of our licences in Rwanda is a trust licence issued by the central bank, and that engagement was very important in the process.”

Okoli further acknowledged the support of Nigerian financial institutions, including the country’s securities regulator and stock exchange operator.

“I also want to appreciate the Nigerian leadership of the Securities and Exchange Commission and the Nigerian Exchange Limited. We are a listed company, and they supported us along the way. They were aware of our engagements, and they communicated with the relevant authorities. This level of cooperation made the process smoother and more transparent. This  expansion is a demonstration of Nigeria’s growing financial influence abroad,” he said.

He noted that the achievement is worth celebrating, “not just for us at United Capital, but for the entire Federal Republic of Nigeria. Because when a Nigerian institution becomes the first foreign firm to enter a market like Ethiopia in investment banking, it is a statement about what Nigeria can export in terms of capacity and professionalism.”

“This is a strategic milestone, not only for United Capital, but for Africa. It is changing the narrative of how we relate with one another. The new African story is one of integration, collaboration, and shared growth across markets,” he added.

The director said United Capital’s strategy is anchored in what he described as a belief in African-led development.
“Our vision is simple but powerful. We believe that the next growth phase in Africa will be determined by Africans. We are aligning with that belief, and we want to play a catalytic role in economic development across the continent.”

On Ethiopia, he pointed to strong macroeconomic indicators and recent reforms, adding that Ethiopia represents one of Africa’s most significant growth markets, both in population and economic scale.

“When you look at Ethiopia, it is the second most populous country in Africa after Nigeria, with over 130 million people. So it is a very significant market, and it is a country where a lot of transformation is currently happening.”

“Ethiopia has shown impressive growth performance. Between 2024 and 2025, the economy has recorded strong expansion, with forecasts of around 7.1 per cent GDP growth. There is also a clear reform agenda that is opening up the economy,” he said.
He added that recent investment forums have attracted billions of dollars in commitments, particularly in energy, green infrastructure, manufacturing, and industrial development to the country.

On Rwanda, he described the country as an emerging regional financial and innovation hub.
“Rwanda is positioning itself as a regional hub for innovation and financial services. It has recorded consistent GDP growth in the range of 5.2 to 5.5 per cent over the last two years, and it continues to attract investor confidence due to its stability and policy direction,” he said.
Looking ahead, Okoli said the company is now focused on execution and delivering value from its expansion footprint.

“For us, what comes next is execution. We have been consistent over the years in what we promise and what we deliver. Now it is about ensuring that our African expansion translates into real value creation for investors and stakeholders,” he said.

He reaffirmed the company’s commitment to shareholder returns, noting its track record of dividend payments.
“We have consistently delivered value to our shareholders. In the last two years, we have been paying interim dividends alongside final dividends. As our operations expand, we expect that scale will reflect in stronger earnings and continued value creation.”
On future expansion, he said the group will take a measured but opportunistic approach.

“For now, the priority is to consolidate our presence in these new markets. As opportunities emerge, we will evaluate them carefully. There is nothing impossible if it aligns with our long-term objective of wealth creation and sustainable growth,” Okoli stressed.
United Capital recorded   a remarkable  growth in revenue of 35 per cent for the year ended December 31, 2025, to N58.55 billion, up from N43.43 billion in 2024.

The reflected the group’s continued execution capability, diversified revenue base, and resilience across its business lines.
Profit before tax (PBT) grew faster by   37 per cent  to N41.18 billion, while profit printed at N28.15 billion.
Board approved a final cash dividend of N0.70  per ordinary share (N12.6billion), bringing total dividend for FY 2025 to N1.00 per share (N18 billion), up 25 per cent  from N14.4 billion payout in 2024.

The group has started the 2026 financial year  on a very promising note, posting highly improved results for the first quarter (Q1)ended March 31, indicating another bountiful  harvest  ahead for the shareholders. For instance, gross earnings rose by 31 per cent from N13.098 billion in Q1 of 2025 to N17.169 billion in 2026. Profit before tax recorded a stronger growth, showing 72 per cent jump from N6.728 billion in 2025 to N11.631 billion in 2026. Similarly, profit after tax  stood at N9.793 billion, indicating a rise  of 66 per cent compared to N5.893 billion in 2025.