The Nigerian Exchange Group has announced that its investment in the Ethiopian securities exchange was a strategic decision for the benefit of its stakeholders.
The NGX Group confirmed recently 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, according to The Punch.
The NGX said in a statement on Sunday, that it was among the top institutional investors that had pushed 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.
The statement read, “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.”
Commenting, the Chairman of NGX Group, Alhaji Umaru Kwairanga stated, ” 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 maximize value for our esteemed shareholders.”
Similarly, the Group Managing Director/CEO of NGX Group, Temi Popoola said, “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”
Meanwhile, the CEO of ESX, Tilahun Esmael Kassahun stated, “We are thrilled to announce that the capital raised 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. We are pleased to welcome
the NGX Group as a strategic partner, building upon the existing support we have received from the NGX
Group.”
