The Nigerian Exchange Group Plc (NGX Group) has invested in the Ethiopian Securities Exchange (ESX).
The Team Lead, Public Relations and Internal Engagement, Marketing and Corporate Communications of the NGX, Joseph Kadiri, disclosed this in a statement issued on Sunday, April 7, 2024.
Kadiri noted 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 the Trade and Development Bank Group (TDB), the financial arm of the Common Market for Eastern and Southern Africa (COMESA) trade block.
He said 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.
Naira gains against dollar at official market
He stated: “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.”
Kadiri said with the investment, the Group Managing Director/CEO of NGX Group, Temi Popoola, will join the board of ESX as a nominee of NGX group.
Kadiri added 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, the Chairman of NGX Group, Umaru Kwairanga, 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.
On his part, the CEO of ESX, Tilahun Kassahun, said the capital raise for Ethiopia’s first securities exchange had exceeded its expectations.
ESX 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.
- ‘It’ll improve access to education’: Kaduna poly lauds Uba Sani on retirement age - December 22, 2024
- Atiku: 2025 budget lacks reforms to tackle Nigeria’s woes - December 22, 2024
- NDLEA stops Italy-based businesswoman from exporting drugs via Lagos airport - December 22, 2024
