The Nigerian Exchange Group has said that its investment in the Ethiopian securities exchange was a strategic decision for the benefit of its stakeholders.
The NGX Group confirmed to The PRIMANEWS on Friday that it invested in the ESX during the recent fundraising that took place in the Horn of Africa nation, where the bourse raised about $26.6m.
In a statement on Sunday, the NGX said it was among the top institutional investors that had injected capital into the operationalisation of the bourse alongside FSD Africa, a UK-backed non-profit financial institution, and Trade and Development Bank Group, the financial arm of the Common Market for Eastern and Southern Africa trade bloc.
“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,” it stated.
Speaking on the development, the Chairman of NGX Group, Umaru Kwairanga, said, “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 maximise value for our esteemed shareholders.”
The Chief Executive Officer of NGX Group, Temi Popoola, declared, “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.”
According to the CEO of ESX, Tilahun Esmael Kassahun, the bourse is thrilled to announce that the capital raise for Ethiopia’s first securities exchange has exceeded 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,” he remarked.
With the investment, Popoola will join the board of ESX as a nominee of the NGX Group.
On surpassing expectations, ESX, in a statement posted on its X handle on Thursday, said, “We are thrilled to announce that ESX closed its capital raise significantly oversubscribed by domestic and foreign investors.
“The Exchange witnessed dramatic interest by domestic and foreign commercial investors, obtaining a whopping ETB 1.51 billion ($26.6m), representing a subscription of 240 per cent of its initial target capital raise of ETB 631 million ($11.07m), with participation by a total of 48 domestic and foreign institutional investors across financial and non-financial sectors.”
ESX was established in October 2023 through a pioneering public-private partnership with the Government of Ethiopia through Ethiopian Investment Holdings, its strategic investment arm, as the founding shareholder.
