NGX Group announces strategic investment in Ethiopian Securities Exchange

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

NGX Group is among the top institutional investors that have injected capital into the operationalisation of the bourse alongside FSD Africa, a UK-backed non-profit financial institution, and the Trade and Development Bank Group (TDB), the financial arm of the Common Market for Eastern and Southern Africa (COMESA) trade block.

This 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.

Alhaji Umaru Kwairanga, Chairman of NGX Group, 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.”

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Temi Popoola, Group Managing Director/CEO of NGX Group, also said: “We are excited to announce our investment in the Ethiopian Stock Exchange, which represents a significant milestone in our expansion strategy.”

Tilahun Esmael Kassahun, CEO of the ESX stated, “We are thrilled to announce that the capital raise for Ethiopia’s first securities exchange has exceeded our expectations, reflecting the unwavering confidence of investors in the potential and prospects of Ethiopia’s economic landscape.

The 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%.