TheCable

Nigerian Exchange (NGX) Group plc has announced a significant investment in the Ethiopian Securities Exchange (ESX).

This was disclosed in a statement by NGX Group on Sunday.

According to the statement, 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.

“The investment in the Ethiopian Stock Exchange reflects NGX Group’s confidence in the potential of Ethiopia’s rapidly growing economy and capital market,” NGX Group said.

“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.

“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% of the exchange whilst private sector players hold 75%.”

Speaking on the investment, Umaru Kwairanga, chairman of NGX Group, said the partnership shows an unwavering dedication to promoting economic development.

“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,” Kwairanga said.

“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.”

Temi Popoola, group managing director and chief executive officer (CEO) of NGX Group, highlighted that the partnership will leverage the group’s expertise and experiences.

“We are excited to announce our investment in the Ethiopian Stock Exchange, which represents a significant milestone in our expansion strategy.,” Popoola said.

”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, said the partnership reflects the unwavering confidence of investors in the potential and prospects of Ethiopia’s economic landscape.