The Nigerian Exchange Group Plc (NGX Group) has invested in the Ethiopian Securities Exchange (ESX).
Mr Jospeh Kadiri, Team Lead, Public Relations and Internal Engagement, Marketing and Corporate Communications of the NGX, disclosed this in a statement on Sunday in Lagos.
Kadiri said that the NGX group was among the top institutional investors that had injected capital into the operationalisation of ESX alongside FSD Africa, a UK-backed non-profit financial institution.
Among the institutional investors was Trade and Development Bank Group (TDB), the financial arm of the Common Market for Eastern and Southern Africa (COMESA) trade block.
He said that the 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.
According to him, this strategically positions NGX as the largest foreign institutional investor in the ESX.
Kadiri said the investment in the ESX reflected the 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,” he said.
According to him, with this investment, Mr Temi Popoola, Group Managing Director/CEO of NGX Group will join the board of ESX as a nominee of NGX group.
Kadiri explained that the investment demonstrates NGX group’s commitment to driving regional integration and collaboration within the African capital markets.
He noted that through strategic partnerships and investments, the NGX group aimed to facilitate cross-border investment flows, enhance liquidity, and promote economic development across the continent.
Commenting, Alhaji Umaru Kwairanga, Chairman of NGX Group, congratulated ESX on its successful capital raise.
Kwairanga commended the Government of Ethiopia and the private sector for their support in bringing the pioneering initiative in the country to fruition.
Kwairanga said: “Our partnership with ESX is a resounding affirmation of our unwavering dedication to promoting economic development, transparency, and exemplary corporate governance standards.
“These foster an environment conducive to inclusive growth, even as we aim to maximise value for our esteemed shareholders.”
Also, Popoola expressed excitement on NGX investment in the ESX, which represents a significant milestone in the group’s expansion strategy.
According to the NGX group managing director, Ethiopia is one of Africa’s fastest-growing economies, with immense potential for investment and growth.
“We believe that by partnering with ESX, we can leverage our expertise and experience to contribute to the development of a robust and dynamic capital market in Ethiopia,” he said.
In his remark, Mr Tilahun Kassahun, CEO of the ESX, said that the capital raise for Ethiopia’s first securities exchange had exceeded its expectations.
Kassahun stated that this reflected the unwavering confidence of investors in the potentials 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,” he said.
ESX significantly surpassed its initial target by raising close to 1.3 billion Ethiopian Birr (ETB) from the private sector, reflecting investors’ robust confidence in Ethiopia’s capital market and economic prospects.
The Government of Ethiopia will retain 25 per cent of the exchange while private sector players hold 75 per cent.(NAN)
