NGX Group Plc has announced its investment in the Ethiopian Securities Exchange (ESX), leading a charge of institutional investors to inject capital into the exchange’s operationalization.
It is noted that the NGX is largest foreign institutional investor in the ESX.
According to corporate disclosure made on the NGX website, NGX Group invested alongside FSD Africa, a UK-backed non-profit financial institution, and Trade and Development Bank Group (TDB), the financial arm of the Common Market for Eastern and Southern Africa (COMESA).
Speaking on the investment, Alhaji Umaru Kwairanga, the Chairman of the NGX Group 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.”
He added, “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, the Group Managing Director of NGX Group noted,
“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.”
Also, Tilahun Esmael Kassahun, the CEO of the ESX, noted, “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. We are pleased to welcome the NGX Group as a strategic partner, building upon the existing support we have received from the NGX Group.”
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The Ethiopian Securities Exchange (ESX) set a capital raise target of 1.3 billion Ethiopian Birr (ETB) ($11.07 million).
However, the exchange’s fundraising effort recorded an oversubscription, raising about $26.6 million in private capital.
It is noted that the Ethiopian Government will maintain a 25% stake in the exchange, with private sector entities holding the remaining 75%.
As part of the investment, it is noted that the CEO of NGX Group, Temi Popoola will join the board of ESX as a nominee of NGX Group.
