Nigerian Exchange Group Plc (NGX Group), a prominent integrated market infrastructure group in Africa, has solidified its footprint in the East African market with a substantial investment in the Ethiopian Securities Exchange (ESX), set to launch in the third quarter of this year.
This strategic investment not only marks NGX Group's foray into East Africa but also positions it as the largest foreign institutional investor in the ESX. Temi Popoola, a key figure within NGX Group, is slated to join the ESX board as a nominee, underscoring NGX Group's commitment to regional integration and collaboration in African capital markets.
“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,” Popoola stated.
NGX Group joins an elite cohort of institutional investors contributing capital to the operationalisation of ESX. Alongside NGX Group, notable entities such as FSD Africa and Trade and Development Bank Group (TDB) have injected funds into the bourse, signalling strong confidence in Addis Ababa's budding capital market and economic prospects. ESX has exceeded expectations by raising close to ETB1.5bn ($26.6mn) from the private sector, with the Government of Ethiopia retaining a 25 percent stake while private sector players hold the remaining 75 percent.
Through this investment, NGX Group aims to bolster regulatory frameworks and promote best practices within the ESX ecosystem. The group pledges ongoing technical assistance and capability enhancements to support ESX's successful operations and growth trajectory.
“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,” said Alhaji Umaru Kwairanga, Chairman of NGX Group
“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 maximise value for our esteemed shareholders.”
