In a significant move that underscores its commitment to fostering growth and innovation in African capital markets, the Nigerian Exchange Group, NGX Plc, has announced a substantial investment in the Ethiopian Securities Exchange (ESX). This strategic decision marks NGX Group’s foray into East Africa and positions it as the largest foreign institutional investor in ESX.
Joined by prominent institutional investors including 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, NGX Group is injecting capital into ESX to support its operationalization. The decision to invest in the Ethiopian Stock Exchange reflects NGX Group’s confidence in the potential of Ethiopia’s rapidly growing economy and capital market. With a keen eye on emerging opportunities in East Africa, NGX Group aims to leverage its expertise and resources to contribute to the development of a vibrant and resilient financial ecosystem in Ethiopia.
This strategic investment is poised to catalyze growth and innovation in Ethiopia’s capital market, facilitating increased investor participation and capital formation. By partnering with ESX, NGX Group seeks to foster the adoption of best practices and robust regulatory frameworks within the Ethiopian financial sector. Alhaji Umaru Kwairanga, Chairman of NGX Group, expressed his enthusiasm for the partnership and its potential to drive economic development and transparency in Ethiopia. “We extend our congratulations to ESX on its successful capital raise,” stated Alhaji Umaru Kwairanga. “Our collaboration signifies our unwavering commitment to promoting economic growth and maximizing value for our esteemed shareholders.”
The investment in ESX aligns with NGX Group’s broader strategy to expand its presence across Africa’s dynamic capital markets. By strategically positioning itself as a key player in Ethiopia’s financial landscape, NGX Group aims to capitalize on emerging opportunities in the region while contributing to sustainable development and inclusive growth. Ethiopia’s rapidly evolving economic sector presents a fertile ground for investment and partnership opportunities. With its young and dynamic population, robust economic growth, and increasing demand for capital market solutions, Ethiopia holds immense potential for investors seeking to capitalize on Africa’s growth story.
As NGX Group embarks on this transformative journey into East Africa, it remains steadfast in its commitment to driving innovation, promoting transparency, and fostering an environment conducive to sustainable growth and development. Through strategic investments and partnerships, NGX Group aims to play a pivotal role in shaping the future of Africa’s financial markets and driving economic prosperity across the continent.
