Nigerian Exchange Group Plc (NGX Group), a leading integrated market infrastructure group in Africa, and other institutional investors have injected funds giving them 75 per cent of the Ethiopian Securities Exchange (ESX), and control of the Central African state’s capital market.
ESX has just raised close to 1.3 billion Ethiopian Birr (ETB) of which the Government of Ethiopia provides 25 per cent of the equity and the remaining 75 per cent from the private sector, significantly surpassing its initial target.
This reflects investors’ robust confidence in Ethiopia’s capital market and economic prospects.
Others investors involved in the 75 per cent equity into the operationalisation of the bourse are FSD Africa, a UK-backed non-profit financial institution, and the Trade and Development Bank Group (TDB), the financial arm of the Common Market for Eastern and Southern Africa (COMESA) trade block.
This pivotal move not only marks NGX Group’s entry into East Africa but also underscores its commitment to driving growth and innovation in the African capital markets, while strategically positioning itself as the largest foreign institutional investor in the ESX.
The investment in the Ethiopian Stock Exchange reflects NGX Group’s confidence in the potential of Ethiopia’s rapidly growing economy and capital market. By partnering with ESX, NGX Group aims to support the development of a vibrant and resilient financial ecosystem in Ethiopia, fostering increased investor participation and capital formation.
Through this investment, NGX Group aims to contribute to robust regulatory frameworks and foster best practices within the ESX ecosystem. The Group remains dedicated to providing ongoing technical assistance and capability enhancements to support the successful operations and growth of the ESX.
Chairman of NGX Group, Umaru Kwairanga, stated, ” We extend our congratulations to the ESX on its successful capital raise and commend the Government of Ethiopia and the private sector for their support in bringing this pioneering initiative in the country to fruition. Our partnership with ESX is a resounding affirmation of our unwavering dedication to promoting economic development, transparency, and exemplary corporate governance standards that foster an environment conducive to inclusive growth, even as we aim to maximize value for our esteemed shareholders.”
Group Managing Director/CEO of NGX Group, Temi Popoola commented: “We are excited to announce our investment in the Ethiopian Stock Exchange, which represents a significant milestone in our expansion strategy. Ethiopia is one of Africa’s fastest-growing economies, with immense potential for investment and growth. We believe that by partnering with the Ethiopian Stock Exchange, we can leverage our expertise and experience to contribute to the development of a robust and dynamic capital market in Ethiopia”.
Tilahun Esmael Kassahun, CEO of the ESX stated, “We are thrilled to announce that the capital raise for Ethiopia’s first securities exchange has exceeded our expectations, reflecting the unwavering confidence of investors in the potential and prospects of Ethiopia’s economic landscape. We are pleased to welcome the NGX Group as a strategic partner, building upon the existing support we have received from the NGX Group.”
With this investment, Popoola will join the board of ESX as a nominee of NGX Group. The investment demonstrates NGX Group’s commitment to driving regional integration and collaboration within the African capital markets. Through strategic partnerships and investments, NGX Group aims to facilitate cross-border investment flows, enhance liquidity, and promote economic development across the continent.
